GERMANY STRUGGLES TO EMERGE FROM CRISIS AFTER GOVT TALKS COLLAPSE

BERLIN - Germany's president was to start a difficult round of talks with party leaders on Tuesday in a last-ditch attempt to save the EU's top economy from the political turmoil sparked by the collapse of Chancellor Angela Merkel's coalition talks.

Frank-Walter Steinmeier, who takes centre stage because he can call snap elections, is expected to use his diplomatic skills as a two-time former foreign minister to persuade reluctant party chiefs to return to the negotiating table.

The head of state, who spoke to Merkel on Monday, planned to meet the left-leaning Greens at his Berlin Bellevue Castle and then, later with the pro-business Free Democrats (FDP), the party which pulled the pin on monthlong coalition talks on Monday.

Its shock decision to withdraw from a potential three-way alliance has thrown the government of caretaker Chancellor Angela Merkel into chaos, leaving her with only bad choices: wooing reluctant coalition partners back to the table, running a minority government, or facing new elections.

"Germans are not natural fans of instability, minority governments or immediate repeat elections, to put it mildly," said Berenberg Bank chief economist Holger Schmieding on the unprecedented situation in German post-war politics.

New parliament speaker Wolfgang Schaeuble, the former finance minister, opened the legislature by reminding all parties of their promise to voters to deliver a stable government, but also conceded that no-one could be forced to join a government they don't want.

As Germany's usually staid and consensus-driven politics enter uncharted territory, Schaeuble, aged 75 and its longest-serving MP, stressed that the country faces "a trial, not a crisis of state."

He underlined that its EU neighbours "need a Germany that is capable of action." In Brussels, the European Commission made clear that "Europe will not pause during this period."