Schulz ready for tense talks with Merkel

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German Chancellor Angela Merkel has rejected new elections and wanted to form a new government quickly, as a outcome of the failed government coalition talks with the Free Democratic Party (FDP) and the Greens.

Schulz's statement came the day after he met with conservative Chancellor Angela Merkel, Bavarian conservative leader Horst Seehofer and German President Frank Walter Steinmeier to discuss the possibilities for a new German government.

The chairman said the SPD's executive committee would discuss various options on Monday, and make a proposal which would be discussed at SPD's party conference from December 7 to 9 in Berlin.

Other options apart from a grand coalition include a minority conservative government - which the SPD could support on a case-by-case basis, or fresh elections.

"The majority (of the SPD) is against a new grand coalition", she told the General-Anzeiger and Rhein-Zeitung newspapers in an interview to be published Saturday.

The SPD's top brass will then present their recommendation to party rank and file during their congress from Thursday.

The unusually testy tone Schulz struck is a reflection of the differences between conservatives and Social Democrats not just over the policies of a possible grand coalition, but whether even to try to form one at all.

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On Friday, her party reiterated that stance, with the CDU's Klaus Schueler saying after a telephone conference of the party leadership: "The CDU is ready to hold serious talks with the SPD to build a stable government".

"I can clearly deny the media report about me having given the green light for grand coalition negotiations".

"We have a lot of options for building a government".

However, several leading Social Democrat politicians have supported a coalition or are backing a minority CDU/CSU government.

Another senior member of Merkel's Christian Democrat Union (CDU), Mike Mohring, said he was hopeful for an eventual grand coalition and expected a new government to be formed by March.

Officials from Erdogan's office said during Thursday's talk Merkel promised she would work toward expediting European Union funds earmarked to help Syrian refugees in Turkey.

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