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[quote:d1f38] Germany's Schroeder Refuses to Concede

By DAVID RISING, Associated Press Writer 19 minutes ago

Exit polls showed conservative challenger Angela Merkel's party leading in German parliamentary elections Sunday, but falling short of the majority she needs to form a center-right coalition.

Gerhard Schroeder refused to concede defeat and said he could still theoretically remain in power if talks with other parties were successful.

Merkel claimed her party had received a mandate from voters to form a new coalition government, and she would talk to all parties with the exception of a small left-wing group as she tried to become Germany's first female chancellor.

"What is important now is to form a stable government for the people in Germany, and we ... quite clearly have the mandate to do that," she said.

Left Party leader Oskar Lafontaine ruled out forming an alliance with Schroeder's party, shutting out the chance of an all-left coalition.

Sunday's vote centered on different visions of Germany's role in the world and how to fix its sputtering economy. Schroeder touted the country's role as a European leader and counterbalance to America, while Merkel pledged to reform the moribund economy and repair ties with Washington.

An exit poll by ZDF public television showed Merkel's Christian Democrats at 35.9 percent, considerably worse than expected and short of a majority with her preferred coalition partners, the pro-business Free Democrats, at 10.4 percent.

Schroeder's Social Democrats were at 33.6 percent, according to ZDF.

ARD public television showed almost identical results, with Merkel's party at 35.7 percent and the Social Democrats at 33.7 percent.

Merkel's party consistently polled above 40 percent during the campaign.

Without a majority, Merkel may be forced as chancellor into a coalition with the Social Democrats, probably without Schroeder.[/quote:d1f38]
[url=http://news.yahoo.com/s/ap/20050918/ap_on_re_eu/germany_election&printer=1;_ylt=Amo_TIH4DFS7hx3urn jiZr9bbBAF;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-:d1f38]Link[/url:d1f38]

[quote:d1f38]
Hung parliament looms in Germany
CDU leader Angela Merkel
Angela Merkel is hoping to step into Germany's driving seat
Germany's centre-right Christian Democrats, led by Angela Merkel, have failed to win a governing majority in Sunday's election, exit polls suggest.

They indicate that the Christian Democrats will be the largest party in what is likely to be a hung parliament.

Ms Merkel - who wants to introduce far-reaching reforms to revive a flagging economy - said she had a "clear mandate" to govern.

But she could be forced into a grand coalition with the Social Democrats.

Germany's ARD television puts with Christian Democrats in the lead with 36% of the vote - much worse than expected.

Their preferred coalition partner, the pro-business Free Democrats, did well with 10%, according to unofficial exit polls - but apparently not enough to secure a joint majority.

Chancellor Gerhard Schroeder's Social Democrats are estimated to have won about 34% of votes.

Economic woes

The Social Democrats called the results a "personal defeat" for Ms Merkel and said Mr Schroeder should remain chancellor in a grand coalition.

The BBC's William Horsley in Berlin says weeks of tough talks lie ahead before Germany gets a new government.


Gerhard Schroeder votes with wife Doris Schroeder-Kopf

German voters' views
Analysis: Power struggle
Ms Merkel said she would "take up talks with all parties" except for the radical Left Party - implicitly acknowledging the possibility of a grand coalition.

The country's sluggish economy, high unemployment and foreign policy have been the election's main themes.

On the eve of polling, Ms Merkel condemned Mr Schroeder's economic record.

During his seven-year stint, Germany's jobless total has risen above five million, and remains at more than 11%, she said.

The CDU and SPD have been arguing ferociously over the nature of economic reforms they both say are necessary.

Mr Schroeder defended the labour and welfare changes he has set in motion, saying Mrs Merkel's proposals on tax and labour reform go too far.

He also recalled his opposition to the US-led invasion of Iraq in 2003 and criticised Mrs Merkel for visiting Washington in the run-up to the war. [/quote:d1f38]
[url=http://news.bbc.co.uk/1/hi/world/europe/4258376.stm[/url]