berlin leader germany social democrats spd say friday rule option form new government stress re-run outgo grand coalition chancellor angela merkel conservatives do deal germany europe political economic powerhouse struggle build new government since sept. 24 national election merkel conservative bloc spd lose support vote anti-immigrant party surge parliament seriously complicate coalition arithmetic merkel political future line 12 years helm make overtures center-left spd partner government past four years bid form three-way coalition two small party fail spd want go opposition rebuild suffer bad post-world war two election result fear distinctive identity policy ideas smother tie-up merkel big center-right bloc regard formation new government broad support rule option spd leader martin schulz say party board discussions berlin schulz hold talk late thursday president frank-walter steinmeier merkel bavarian ally horst seehofer deny agree another grand coalition clearly deny media report give green light grand coalition negotiations simply wrong schulz say add report appear base source within merkel conservative cdu/csu bloc add whoever circulate report damage trust tie spd conservatives still share power caretaker capacity already strain week conservative minister back extend use weedkiller european union level spd wish without prior knowledge lot options build government talk options exactly propose party leadership monday schulz say spd hold party congress berlin dec. 7-9 expect debate options options apart grand coalition include minority conservative government spd could support case-by-case basis fresh elections merkel say past want lead minority government merkel camp say ball spd court spd provide clarity say cdu manager klaus schueler fact underline today prepare enter talk spd show aim bring talk successful conclusion another senior member merkel christian democrat union cdu mike mohring say hopeful eventual grand coalition expect new government form march way grand coalition pave mohring tell reuters take part teleconference merkel brief federal board christian democratic union cdu thursday night talk schulz president schulz former president european parliament say want change germany approach european union economic social policy interview spiegel magazine schulz say spd back french president emmanuel macron call close eurozone integration include new finance minister currency bloc ideas face resistance conservatives give emmanuel macron positive answer key element every negotiation spd schulz quote say interview make available friday add also back joint eu tax policy coalition merkel automatic options open germany 's spd