Germany deadlock lifted as Merkel enters coalition talks

Germany's centre-left party has agreed to coalition talks with Angela Merkel's conservatives after four months of deadlock.

The Social Democratic Party (SPD) voted on Sunday afternoon to enter into talks with Chancellor Merkel's Christian Democratic Union (CDU).

At a special party congress in the western city of Bonn, 372 (56%) out of 642 party delegates voted to approve a preliminary coalition deal with the CDU.

If the vote had gone the other way Mrs Merkel was looking at a snap election or the prospect of leading an unstable minority government.

"We are relieved, the result shows that we had to fight for this majority," Mr Schulz said.

Mrs Merkel said: "The blueprint from the exploratory talks is the framework in which we will negotiate and there are still many questions to clear up in detail and that will require intensive talks."

The vote marked a step towards ending Germany's political gridlock after Mrs Merkel lost her majority in September's federal elections.

Many blamed the result on Mrs Merkel's 2015 open borders policy, which had allowed nearly a million refugees into the country.

The post-election gridlock has caused concern across Europe, as Germany is the continent's largest economy and is seen as a steady hand and influential player in the European Union (EU).

Mrs Merkel's CDU party had been in a grand coalition with the SPD for eight of the past 12 years.

The SPD were also battered in the election, achieving a record low score of 20.5%.

Its leader, Martin Schulz - president of the European Parliament until last year - blamed his party's loss in popularity on its coalition with Mrs Merkel.

He had immediately said he would not form another coalition with Mrs Merkel, who has been chancellor since 2005.

But in recent weeks he has softened his stance and on Sunday morning he was urging party members to vote to open coalition talks with Mrs Merkel.

He said a stable German government was needed as a bulwark against right-wing extremism.

Mr Schulz said his view of the situation had changed after Mrs Merkel failed to form a coalition with two smaller parties, the Free Democratic Party and the Green Party.

He said: "Europe is waiting for a Germany that knows its responsibility for Europe and can act decisively."

Many grassroots SPD members are angry as they believe some time on the opposition benches would help Germany's oldest party regain popularity.

If a grand coalition is re-formed, a new government could be in place by mid-March - nearly six months after the disastrous election.