Germany inches closer to Scholz-led govt

Germany's Greens and the liberal FDP party yesterday said they wanted to try to form a coalition government with the centre-left Social Democrats (SPD), dealing a blow to Chancellor Angela Merkel's conservatives.

The move brings the Social Democrats' Olaf Scholz a step closer to the chancellery after 16 years of Merkel's centre-right-led government.

The political upheaval in Europe's biggest economy was unleashed by last month's general election which Scholz's party won with 25.7 percent, followed by Merkel's CDU-CSU bloc at 24.1 percent.

For either party to head the next German government it would need the support of the centre-left Greens and the pro-business Free Democrats (FDP), which came third and fourth.

Despite leading the conservatives to their worst-ever election result, beleaguered CDU leader Armin Laschet insisted he still has a shot at the top job.

Speaking to reporters, Laschet said the conservatives "respect the decision" by the two kingmaker parties to pursue a coalition with the SPD.

But the CDU-CSU is "still ready to hold talks," he said.

CSU leader Markus Soeder however gave a more sobering assessment, saying the possibility of a CDU-CSU government had essentially been "rejected".

The conservative bloc must now prepare itself for a stint in opposition after four Merkel-led coalitions, he said.

"This will change our country," Soeder said, adding: "The conservatives will enter a new era too."

Recent surveys suggest most Germans want Scholz, who is also finance minister and vice chancellor, to become the next leader of Europe's top economy.