Germany faces the risk of having to hold new elections.

German Chancellor Angela Merkel will have to accept forming a minority government or the President will call new elections.

Talks to form a German coalition government have collapsed after the Free Democratic Party (FDP) withdrew from the talks. The formation of a coalition between Chancellor Merkel's CDU/CSU, the business-friendly Free Democratic Party (FDP) and the environmentalist Green Party is unprecedented in German political history.

German Chancellor Angela Merkel. Photo: Reuters

After four weeks of negotiations, with the final round of talks on November 19, the parties are close to agreement on key points, including climate policy, but remain sharply at odds over immigration policy. While tax and public finance issues have become difficult, the most complex link concerns immigration policy.

Speaking to German media, a spokesman for the Free Democrats announced that the party had withdrawn from talks to form a coalition government. Free Democrats leader Christian Lindner stressed: “The disagreements show that the four parties do not share a common vision of how to modernize the country and, above all, cannot build a common foundation that would create mutual trust.

These are the prerequisites for a stable government. We do not know what we will face in the coming years in Germany, Europe or the world. If the four parties cannot come up with a common plan to address the challenges, this will not be a good start.”

German Chancellor Angela Merkel has expressed regret at the failure of negotiations to form a new coalition government, but pledged to help Europe's largest economy overcome the current crisis.

“We think we are on the way to an agreement. But this is a sad day for Germany. As chancellor, I will do everything I can to ensure that the country is in control in the difficult weeks ahead,” Merkel said.

Given the current developments, Chancellor Merkel could seek to form a minority government with the Greens and collect independent votes from other parties.

Merkel said she would meet with German President Frank-Walter Steinmeier to inform him of the failure to form a coalition government, a move that suggests she may not seek a minority government with the Greens.

Having failed to bring the Free Democrats back to the negotiating table, Chancellor Merkel will have to try to convince the Social Democrats. However, Social Democratic leader Martin Schulz has once again ruled out the possibility of a grand coalition with Chancellor Merkel's coalition.

If all else fails, German President Frank-Walter Steinmeier could dissolve the current parliament and call new elections, something all sides want to avoid for fear of giving the far-right Alternative for Germany (AfD) party more leverage.

Polls now also show that holding a new election would yield a similar result, leaving efforts to form a new government at a standstill.

Failure to form a government in Europe's largest economy could have major implications for eurozone reforms as well as EU policy on Russia and Türkiye.

Germany has long been a mediator for Greek issues within the Eurozone as well as promoting EU sanctions policies against Russia./.

According to VOV