26 September 2005

BERLIN - Angela Merkel turned up the heat on Chancellor Gerhard Schroeder by vowing Monday not to open formal talks for a coalition with his Social Democrats unless he gave up his demand to remain Germany's leader.

Merkel's Christian Democratic alliance (CDU/CSU) came in first in Germany's September 18 election but failed to win a majority, leaving the nation in political deadlock.

Both Merkel and Schroeder have claimed the right to set up the next government.

Merkel, who met with Schroeder for exploratory talks last week and will do so again on Wednesday, stressed that formal negotiations for a grand coalition between her CDU/CSU and the Chancellor's SPD would only take place if Schroeder dropped claims to the chancellery.

"The precondition on trust is that we, as the biggest party, put up the chancellor," said Merkel.

Aside from assurances the SPD was not seeking to set up a minority government when the new parliament convenes by October 18, Merkel set several other conditions before full-blown coalition talks can begin.

She said both parties must agree on the general state of the nation and its problems, including massive budget deficits. There also had to be agreement on the key problem areas to be tackled including the controversial issue of further jobless benefit cuts.

Comments by Schroeder at the weekend had been interpreted as showing he was softening his insistence on staying on as head of a grand coalition.

But remarks Monday by leading members of his SPD - which appear to have been coordinated by the party - made clear there was no softening of this demand.

"Gerhard Schroeder will be chancellor," said Ludwig Stiegler, a deputy leader of the SPD in parliament.

Heidemarie Wieczorek-Zeul, who heads the development aid ministry, insisted: "Frau Merkel has lost."

On election night, Schroeder vowed to stay on as chancellor despite the fact that his SPD won 34.

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