Fresh elections in Germany appeared increasingly likely Monday evening after Chancellor Angela Merkel announced that she preferred a new vote over governing without a parliamentary majority, CNN reports.
The country has been plunged into its worst political crisis in years after negotiations to form the next government collapsed overnight, dealing a serious blow to Merkel and raising questions about the future of the longtime Chancellor.
Merkel's party, which lacks a majority in the Bundestag, had spent weeks trying to cobble together a ruling coalition with three other parties. But the plan fell apart when the liberal Free Democratic Party (FDP) walked out of talks shortly before midnight on Sunday over disagreements on issues ranging from energy policy to migration.
Speaking to state broadcaster ARD Monday evening, Merkel said that the "path of minority government" should be considered "very very closely".
"I am very skeptical and I believe that new elections would be the better path," she said. Merkel also confirmed that she would be ready to lead her party into any new vote.
She did not rule out further talks with other parties, however, and acknowledged that the country's next steps were in the hands of German President Frank-Walter Steinmeier.
Merkel met with Steinmeier earlier in the day to discuss the country's options. Speaking after their meeting, Steinmeier described the situation as unprecedented in postwar Germany and urged the country's parties to work together to try to form a government.
But Merkel is not the only party leader who has voiced doubt about whether further talks could lead to a resolution. Martin Schulz, the leader of the Social Democrats -- the second largest party in parliament after Merkel's Christian Democratic Union (CDU) -- described new elections as "the right path" earlier Monday.
Either way, the setback has raised concerns about the political stability of Europe's largest economy. The euro weakened against major currencies on Monday and Germany's DAX dropped 0.4% in early trade before recovering its losses.