International reaction: Germany's election stalemate deepened concerns about political uncertainty at the heart of the European Union yesterday and fuelled fears that the outcome will discourage economic reform in other countries.
European leaders were left wondering who to congratulate as the shape of Germany's next government and the name of the next chancellor hung in the balance after Sunday's election.
European Commission president José Manuel Barroso voiced the concerns of many by calling for a quick end to the deadlock.
"I think as president of the European Commission, I have a duty on behalf of the European institutions to urge German political leaders to come as soon as possible to a solution that is stable for Europe," Mr Barroso said in the European Parliament.
A Commission spokeswoman made clear Mr Barroso was referring to political and financial questions which will not be resolved until Germany installs a new chancellor, including agreement on the European Union's long-term budget.
"If this is an antipasto of a future trend in Europe there is nothing to be cheerful about," Italian newspaper Il Messaggero wrote.
"What has happened is what none of the German parties hoped for and what all European governments feared - the twin fears of economic decline and the loss of the welfare state won in Germany, with the result that neither of the two coalitions will be able to form a government," Italy's Corriere della Sera said.
Newspapers in Britain portrayed the outcome as little short of a disaster. In an editorial headlined "The worst result", the Times said the uncertain outcome was "probably the worst possible for the country".
Other editorialists said the outcome left the EU facing more uncertainty, just when it needed stability after French and Dutch voters' rejection of the 25-nation bloc's constitution.
There was no official reaction in Washington yesterday to the German election results but the lack of a clear result will disappoint an administration that hoped for improved relations with Berlin.
Ivo Daalder, a senior fellow at the Brookings Institution, said that President Bush, preoccupied with the aftermath of Hurricane Katrina and Iraq, needs strong allies more than ever. "The last thing we need at this time is a Germany that is uncertain about its future destiny," he said.