Merkel signals readiness for new election after coalition talks collapse

BERLIN, (Reuters) - Chancellor Angela Merkel said she would prefer a new election to ruling with a minority after talks on forming a three-way coalition failed overnight, but Germany’s president told parties they owed it to voters to try to form a government.

The major obstacle to a three-way deal was immigration, according to Merkel, who was forced into negotiations after bleeding support in the Sept. 24 election to the far right in a backlash at her 2015 decision to let in over 1 million migrants.

The failure of exploratory coalition talks involving her conservative bloc, the liberal pro- business Free Democrats (FDP) and environmentalist Greens raises the prospect of a new election and casts doubt about her future after 12 years in power.

Merkel, 63, said she was sceptical about ruling in a minority government, telling ARD television: “My point of view is that new elections would be the better path.” Her plans did not include being chancellor in a minority government, she said after meeting President FrankWalter Steinmeier.

Steinmeier said Germany was facing the worst governing crisis in the 68-year history of its post-World War Two democracy and pressed all parties in parliament “to serve our country” and try to form a government.

His remarks appeared aimed at the FDP and the Social Democrats (SPD), who on Monday ruled out renewing their “grand coalition” with the conservatives.