BERLIN, Sept 22: First coalition talks between Germany’s two biggest parties ended without immediate agreement on Thursday, with conservative leader Angela Merkel saying there were ‘clear differences’ between her and Chancellor Gerhard Schroeder.

“Differences of opinion between the two sides were clear,” Merkel said after the discussions, which were aimed at working out how to end the debilitating political stalemate caused by Sunday’s inconclusive general election.

Germany’s future depends on which of the two main parties will win the race to assemble a governing coalition.

Both Merkel, whose Christian Democrats (CDU/CSU) narrowly won the election but without enough seats to gain a majority, and Schroeder insist they should lead the country. They agreed to meet again next Wednesday.

Thursday’s one-hour discussions set the tone. “I made it clear that I, together with the Christian Democrats, have a mandate to form a government,” Merkel said.

“We made it clear we want to govern with Schroeder as chancellor,” retorted Social Democrats’ leader Franz Muentefering.

Nevertheless, most observers believe the final outcome will be a so-called grand coalition of conservatives and Social Democrats.

Muentefering said the meeting on Wednesday would give the parties ‘a better chance to judge whether this configuration has any prospects’.

A poll released on Thursday by the Emnid institute showed 47 per cent of Germans would like to see Merkel lead a grand coalition, against 44 per cent for Schroeder.

Before her meeting with Schroeder’s party, Merkel held initial discussions with the pro-business Free Democrats, her preferred coalition partners.

Aiming to become the country’s first woman chancellor, Merkel, 51, said the Christian Democrats would not accept a minority government.—AFP