Germany in limbo as coalition talks collapse

Germany faces the prospect of another general election, after the centre-right Free Democrats (FDP) pulled out of talks to form a coalition with Angela Merkel’s Christian Democrats (CDU) and the Greens.

Merkel had hoped to announce an agreement with coalition partners by 5pm yesterday, two months after the September election, which left the CDU as the largest party, but with a reduced share of the vote.

However, at an impasse over immigration policy, the three parties “had been unable to agree the painful compromises needed to wrap up talks”, says Reuters. FDP leader Christian Lindner said there was no "basis of trust".

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Failure to agree a deal “could precipitate Germany’s worst political crisis in decades,” says Reuters, especially since the Social Democrats, who came second in the election, have already said they intend to go into opposition.

Merkel’s options include new elections or a minority government, unprecedented in the country’s post-war history.

The failure to agree a deal centred on a proposed immigration cap, a hot-button issue during the election because more than a million refugees have entered Germany over the past two years.

Both Merkel’s allies on the right and the FDP, who want a 200,000 a year cap on immigrants, fear a failure to agree a limit will fuel support for far-right parties, notably Alternative for Germany (AfD), which came in third in September.

The Greens oppose a cap.