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Schroeder open to coalition talks
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QUICKVOTEYOUR E-MAIL ALERTSBERLIN, Germany -- German Chancellor Gerhard Schroeder has said he is prepared for coalition talks with other parties without "any form of preconditions" in a search for a stable new government. Voters denied both Schroeder and opposition leader Angela Merkel a majority in Sunday's election, but each is demanding the chancellor's office, launching a struggle that could last weeks while business leaders and economists warn decisive action is needed to fix the struggling economy. Schroeder said Tuesday all talks this week between his Social Democrats and other parties would be preliminary. "It's about exploratory talks -- a phase in which we must talk to one another about how one will bring about a stable government, which we need at this time," he said. "Any form of precondition would, as I see it, be inappropriate." Schroeder had previously said he was opposed to a deal with the new Left Party, made up of renegade Social Democrats and former East German communists. CNN's European Political Editor Robin Oakley said: "There's a lot of ritual mating dancing going on at the moment. The early phases of those rituals involve aggression, fluffing out the feathers, and trying to show you are bigger than the other fellow is. "And before we get down to the wooing in the backrooms, they are all trying to assert their credentials. "Both major parties having been rebuffed by the electors, have lost seats and have lost share of the vote, but both saying they are the victors and they have the right to provide the chancellor." Merkel, whose campaign to become the first female chancellor was thrown into doubt after a narrow victory, said her conservatives would seek to form a government "as soon as possible." Analysts say Merkel must shore up support in her own party after a disappointing campaign. She made progress towards that goal Tuesday by winning overwhelming backing from her party to continue as parliamentary leader. "Today's vote underlined that as the strongest bloc in Parliament, it is up to us to build a government," The Associated Press quoted Merkel as saying. "We are faced with a challenge that is difficult, but solvable." Social Democrat Chairman Franz Muentefering said Schroeder should lead the country, and rejected Merkel as chancellor at the head of a "grand coalition" of conservatives and Social Democrats. "The message was clear: This country does not want Mrs. Merkel as chancellor," he said. Schroeder's seven-year-old government of Social Democrats and Greens was ousted Sunday after failing to cut the country's high unemployment and bring about substantial economic growth. But Merkel's call to reform the country's rigid rules on hiring and firing and simplify taxes also were rejected by an electorate that seemed skeptical of drastic change. Schroeder exulted in a strong comeback from as much as 20 points down in the polls, while a subdued Merkel had to admit that the vote was "a success, if not a perfect one." Her Christian Democrats and their Bavarian sister party just barely beat out Schroeder's 35.2 percent to 34.3 percent. Official results showed Merkel's group winning 225 seats, three more than the Social Democrats. The Free Democrats got 61, the Greens 51 and the new Left Party 54. Voting in one district, in the eastern city of Dresden, has been delayed until October 2. The Bundestag has at least 598 seats, plus seats added due to the country's system of proportional representation; the final number of seats will be known after the Dresden vote. Most speculation has focused on a "grand coalition" between the Christian Democrats and the Social Democrats. But that would face an obstacle in clashing demands from each side that their leader be chancellor. Some fear such a government would be incapable of making tough decisions about how to tackle the country's problem with sluggish economic growth. Last year, 1.6 percent was considered a recovery after three years of near zero expansion. Party officials spent most of their time Tuesday ruling out potential combinations. The heads of the Left Party, Gregor Gysi and Oskar Lafontaine, said they would not keep the current government in power in an all-left coalition of Social Democrats, Left Party and Greens. The pro-business Free Democrats said they would not form a government with the Social Democrats and Greens, nor would they join in a coalition with the Christian Democrats and Greens, dubbed the "Jamaica" coalition because the party colors -- black, yellow and green -- are those of that country's flag. The Social Democrats and the Christian Democrats both ruled out working with the Left Party. Oakley said: "Basically what it boils down to is whether Angela Merkel detaches the Greens from Chancellor Gerhard Schroeder into a coalition with her and the Free Democrats, or whether Chancellor Schroeder detaches the Free Democrats from Angela Merkel's side." Parliament must meet in 30 days, but analysts say the wrangling could drag out while Schroeder remains interim chancellor. If parliament cannot choose a winner in three tries, President Horst Koehler can appoint a minority government, raising the specter of instability and another election before parliament's four-year term is up. Copyright 2005 CNN. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed. Associated Press contributed to this report. 
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