Germany: German chancellor Gerhard Schröder has said he is prepared to enter a grand coalition to break Germany's week-old coalition stalemate, but that he is not prepared to stand aside.
Mr Schröder said a "sensible solution" had to be found to form a new government after his Social Democrats ended last week's election one percentage point and three seats behind the rival Christian Democrats (CDU) led by Angela Merkel.
"I am in favour of the two large parties going together . . . that this grand coalition comes about. I will do everything that it comes about," Mr Schröder told ARD public television yesterday, but he warned his position was not up for discussion before talks began.
"The leadership question will be resolved, it has to be resolved," he said, "but it is only sensible to resolve it if it is clear that they really want an agreement."
The CDU is determined to resolve the personality issue first, and remove Mr Schröder from the talks table. CDU general secretary Volker Kauder said: "It must be evident that the strongest party determines who will be chancellor. If there is no agreement on this question, coalition negotiations make no sense."
Roland Koch, CDU state premier in Hesse, said Mr Schröder had taken the SPD "emotional hostage".
A chancellery source hit back yesterday, telling the Bild am Sonntag newspaper: "We want a grand coalition for four years and we feel bound to that. But one cannot begin a coalition with demands of subservience."
The newspaper suggested that Mr Schröder had expressed concern that voters might have difficulty accepting a government in which neither he nor Dr Merkel played a role. SPD leader Franz Müntefering says he will not make any further decisions until after next Sunday's postponed Dresden byelection.
Senior SPD members however had registered some impatience.
EU Commission vice-president Günther Verheugen said: "It is in European interests that Germany regains full capability to act and continue its battered reform politics for growth and employment."
SPD deputy parliamentary leader Gernot Erler said his party would need to demonstrate greater flexibility in the talks.
