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German political leaders mull next move
(AP)
Updated: 2005-09-19 19:09

Germany's political leaders on Monday began the difficult process of trying to form a new government after an inconclusive election that left Angela Merkel's conservative party well short of a clear mandate to deepen reform of Europe's largest economy, the Associated Press reported.

Picture combo shows German chancellor Gerhard Schroeder, left, and his challenger Angela Merkel, after the parliamentary election in Berlin, Sunday Sept. 18, 2005. Projections showed conservative challenger Angela Merkel struggling to hold a lead in Germany's close-fought election Sunday and falling short of a majority for a center-right coalition. Chancellor Gerhard Schroeder refused to concede defeat and said he could still lead the next government. [AP]

Both Merkel and Chancellor Gerhard Schroeder claim the right to head the next government, although the election left Schroeder's outgoing government of Social Democrats and Greens without a majority in parliament. Merkel's preferred combination of her Christian Democrats and the pro-business Free Democrats also fell short.

Germany's benchmark stock market opened down nearly 2 percent, reflecting the uncertain outcome. Leaders of the main parties gathered in Berlin to plan their next move.

The vote centered on different visions of Germany's role in the world and how to fix its sputtering economy and an unemployment rate of 11.4 percent. Schroeder touted the country's role as a European leader and counterbalance to America, while Merkel pledged to reform the economy and strengthen relations with Washington.

Official results showed Merkel's party winning 225 seats, three more than the Social Democrats. The Free Democrats got 61, the Greens 51 and the new Left Party 54. The latter is an alliance of ex-communists and former Social Democrats alienated by Schroeder's efforts to trim the welfare state.

Those results were based on ballots from 298 of 299 districts; voting in the final district, in the eastern city of Dresden, has been delayed until Oct. 2 because of a candidate's death.

Merkel underlined her claim to become Germany's first female chancellor, telling reporters before she met with fellow party leaders that "we have the strongest group in parliament and, with that, a clear mandate to form the government."

A "grand coalition" of the two main parties appeared a likely outcome. However, Volker Kauder, general secretary of Merkel's conservative party, said it also would seek talks with the Greens on a three-way combination that would include the Free Democrats — winning a cool initial reaction.

"We are interested in content," Greens co-leader Claudia Roth told ARD television. "We are not interested just in governing, we are interested in politics."

Merkel likely will have to water down plans to shake up Germany's labor market and reform its tax system to gain a majority with a party to her left. To woo the Greens, she likely would have to soften plans to stop the outgoing government's policy of shutting down nuclear power plants. Her opposition to Turkish membership in the European Union also is up in the air.

Both Merkel and Schroeder said Sunday night that they would seek talks with every other party except the Left Party.

An exuberant Schroeder, who described the conservatives' result as "disastrous," taunted Merkel in a joint television appearance, saying she would not receive the post of chancellor in any deal with the Social Democrats — a message reinforced Monday by a senior aide.

"If the voters make it so clear that they don't want Mrs. Merkel ... then I think we also have the task of fulfilling voters' wish that Gerhard Schroeder should remain chancellor," Social Democratic general secretary Klaus Uwe Benneter told ZDF television.

With the Left Party ruled out as a partner, Schroeder's only option besides a "grand coalition" with the Christian Democrats would be a combination of Social Democrats, Greens and Free Democrats — a possibility the latter immediately rejected.

The daily Frankfurter Allgemeine Zeitung proclaimed that Schroeder's era was over. But, it said in an editorial, "nothing in Sunday's election result speaks for other parties having gained the trust that Schroeder and the Social Democrats lost."

The Christian Democrats' failure even to match their result from the last election in 2002 "demonstrates the distrust of many citizens toward their program and also toward their leader, Angela Merkel," it said.

If the new parliament cannot elect a chancellor in three attempts, President Horst Koehler could appoint a minority government led by the candidate with a simple majority.

Both major parties suffered losses in the election, with Merkel's Christian Democrats winning 35.2 percent of the vote against 34.3 percent for Schroeder's party. Three years ago, both scored 38.5 percent.

The three smaller parties all performed strongly, with the Free Democrats winning 9.8 percent, 8.1 percent for the Greens and 8.7 percent for the Left Party.

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