German Chancellor and chairwomen of the German Christian Democratic Union (CDU), Angela Merkel. Photo / AP
Talks over forming the framework for a new German government have broken down after the Free Democrat party pulled out of discussions with German Chancellor Angela Merkel's conservative bloc and the Greens.
The development raises the question of whether Germany will be heading for new elections.
Other options for Merkel would be attempting to continue her current coalition with the Social Democrats, which that party has said it will not do, or she could try to go ahead with a minority government.
Free Democrats leader Christian Lindner told reporters his party decided to pull out of the drawn-out talks rather than further compromise its principles. He says "it is better not to govern, than to govern falsely".
Merkel's conservative Christian Democrats (CDU) and sister Bavarian-only Christian Social Union (CSU) sat down for gruelling talks with the pro-business Free Democrats (FDP) and the left-leaning Greens throughout the weekend in the hope of forming a new government, dubbed the "Jamaica coalition" because the parties' colours match those of the Jamaican flag.
Merkel had hoped to wrap up the talks, which began more than four weeks ago, by the end of the weekend in order to avert fresh elections that could destabilise Germany and Europe.
Greens politician Reinhard Buetikofer criticised Lindner's decision, saying on Twitter that the Free Democrat leader had chosen "a kind of populist agitation instead of governmental responsibility".
Katrin Göring-Eckardt, Green Party leader, said: "We negotiate as long as necessary." While Horst Seehofer, CSU boss, said: "I think we need a little bit more time."
Key sticking points were the issues of migration and climate change.
Among other things the Greens were pushing for Germany to end its use of coal and combustion engines by 2030, though they had signalled they were open to some compromise.
The other parties are also committed to reducing carbon emissions, but Merkel's bloc hadn't put a date on when to phase out coal. The Free Democrats also expressed concern about what the moves would mean for jobs and Germany's economic competitiveness.
Disagreements around immigration have been a major part of the discussions after Germany's open-door policy to refugees in 2015.
The Christian Social Union was pushing for an annual cap on refugees, while the Greens wanted to allow more categories of recent migrants to bring their closest relatives to join them.
The delay is bad news for an increasingly vulnerable chancellor. "Today is a day of destiny for Mrs Merkel," Bild said yesterday before the deadline passed. "If she fails to forge a coalition, then her chancellorship is in danger."
A poll by Welt online had found that 61.4 per cent of those surveyed believed a collapse of talks would mean an end to Merkel as chancellor.
Frank-Walter Steinmeier, Germany's President, has played down the conflict, saying there was "no need to start holding panic debates about new elections".
The Social Democrats have been adamant about going into opposition after a disastrous result in the September 24 election. Party leader Martin Schulz today again ruled out the possibility of pairing up with Merkel's bloc to form a new government.
If it comes to a new election, polls currently suggest it would produce a very similar parliament to the current one.