berlin chancellor angela merkel say would prefer new election rule minority talk form three-way coalition fail overnight germany president tell party owe voters try form government major obstacle three-way deal immigration accord merkel force negotiations bleed support sept. 24 election far right backlash 2015 decision let million migrants failure exploratory coalition talk involve conservative bloc liberal pro-business free democrats fdp environmentalist green raise prospect new election cast doubt future 12 years power merkel 63 say sceptical rule minority government tell ard television point view new elections would good path plan include chancellor minority government say meet president frank-walter steinmeier steinmeier say germany face bad govern crisis 68-year history post-world war two democracy press party parliament serve country try form government remark appear aim fdp social democrats spd monday rule renew grand coalition conservatives inside country also outside particular european neighbourhood would concern lack understand politicians big economically strong country europe live responsibilities read statement steinmeier former foreign minister thrust centre-stage take usually largely ceremonial head state role march steinmeier intervention suggest regard new election desire half germany voters accord poll last resort spd far stick pledge heavy losses september election go back merkel-led broad coalition centre-left centre-right merkel urge spd reconsider would hope consider intensively take responsibility govern tell broadcaster zdf add saw reason resign conservative bloc would enter new election unify new elections happen ... accept afraid nothing say business leaders also call swift return talk german leadership see crucial european union grapple governance reform britain impend exit fdp leader christian lindner announcement pull spook investors send euro fall morning euro european share late recover early sell german bond yield steady near 1-1/2 week low confidence outlook euro zone economy help investors brush worry risk germany go poll soon fear far-right gain early merkel get strong back cdu leadership josef joffe publisher-editor germany weekly die zeit say could rely cdu support add bet serve entire four-year term main party fear another election soon would let far-right anti-immigrant alternative germany afd party add 13 percent vote secure september enter parliament first time poll suggest repeat election would return similarly fragment parliament poll publish monday show new election would bring roughly result september election green set see big gain germans vote next sunday merkel conservatives would get 31 percent spd 21 percent green afd 12 percent fdp 10 percent leave party percent forsa survey rtl television show compare election result 32.9 percent conservatives 20.5 percent spd 12.6 percent afd 10.7 percent fdp 9.2 percent leave party 8.9 percent green failure coalition talk unprecedented germany post-war history liken newsmagazine spiegel shock election u.s. president donald trump britain referendum vote leave eu moments countries cast aside reputations stability build decades outcome germany however likely consensus drive problem stagnation immobility instability italy say joffe unravel german talk come surprise since main stick point immigration climate policy see fdp signature issue respond criticism green fdp vice chairman wolfgang kubicki say tie-up would short-lived nothing would bad get relationship know end dirty divorce say even spd fdp revisit decisions price either party change mind could departure merkel since 2005 symbol german stability lead europe euro zone crisis inability form government cause disquiet elsewhere europe least implications euro zone reform champion french president emmanuel macron germany political impasse could also complicate potentially delay brexit negotiations britain year strike divorce deal eu ahead exit plan march 29 2019. interest process freeze macron tell reporters paris add speak merkel shortly failure talk merkel signal readiness new election coalition talk collapse