Germany's opposition leader Angela Merkel and the chairman of Chancellor Gerhard Schroeder's party made their first contacts with potential coalition partners Monday in a scramble for power after the country's inconclusive election. Voters denied both Schroeder and Merkel a majority, but each is demanding the chancellor's office. Their struggle could last weeks, even as business leaders and economists warn decisive action is needed to invigorate the sluggish economy.Germany's foreign policy — addressing such issues as Turkey's bid for European Union membership, Iran's nuclear program and U.S. relations — also remains on hold. "Germany is paralyzed at the worst time for European diplomacy," said leading French foreign affairs analyst Dominique Moisi. On Iraq and in dealings with China and Russia, Washington officials "were looking for a stronger, more united, cooperative Europe. Obviously, they are not going to have it."
Merkel's conservative Christian Democrats and their Bavarian sister party just barely beat Schroeder's Social Democrats 35.2 percent to 34.3 percent. The muddled result could lead left and right to link up in a so-called grand coalition. But either Merkel or Schroeder would have to yield the chancellorship, and many fear such a merger would be too internally divided to be effective.