GERMANY: Germany's power poker could end later today after exploratory talks between the Social Democrats (SPD) and Christian Democrats (CDU) ended yesterday with neither side giving ground.
The parties are caught in a chicken-and-egg situation: the SPD wants to begin coalition talks and solve the chancellorship issue during these talks; CDU leader Angela Merkel has staked her claim to the chancellorship and wants the SPD to accept this before talks begin.
"I believe the talks have shown there is a basis for a grand coalition," said chancellor Gerhard Schröder after the talks yesterday. He said both sides had found common ground on issues such as budget consolidation, social welfare reform and streamlining decision-making in Germany's federal structures. Outstanding items, including the chancellorship, would be hammered out in another meeting to be held "promptly", he said.
Some reports suggested yesterday that the talks could take place as early as this morning.
SPD leader Franz Müntefering said it was likely he would tell the party executive this morning that coalition talks with the CDU would be worthwhile.
Ms Merkel was "more optimistic than pessimistic" of solving the so-called "chancellor question".
Bavarian state premier Edmund Stoiber said coalition talks could begin next week.