Greens put a stop to Merkel's plans for a 'Jamaica coalition'

Germany's conservative leader Angela Merkel has failed to reach agreement with the Green party on forming a coalition government, increasing the likelihood that she will forge an alliance with Chancellor Gerhard Schröder's Social Democrats to end the country's post-election stalemate.

Talks between Ms Merkel's Christian Democrats and Green party leaders collapsed after less than half an hour yesterday, bringing an abrupt end to speculation the two parties might join with the liberal Free Democrats to form a so-called "Jamaica coalition" government to break the political deadlock.

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Edmund Stoiber, the Bavarian Prime Minister and one of the conservatives' chief negotiators in the discussions, said afterwards: "Our differences were very, very great. Further talks are simply not possible at the moment."

Reinhard Bütikofer, the Green party leader, said: "The chances of our reaching a coalition agreement are extremely small. We were simply not prepared to be used as the auxiliary motor which would help realise a conservative and neo-liberal election manifesto."

Even before the talks started, both sides were doubtful that they could reach a compromise over their diametrically opposed policies on nuclear power, Turkish membership of the EU and health. Several rank-and-file Green party members had warned that it would be the "death of the Greens" if the party allowed itself to form an alliance with its traditional enemies.

The collapse of the talks meant that Ms Merkel was left with only two options to end the stalemate that has paralysed German politics since last Sunday's inconclusive general election in which no party won a big enough majority to form a governing alliance with its preferred coalition partner.

Ms Merkel faced the choice yesterday of attempting to form a minority government with her chosen liberal Free Democrat partners and the risk of laying her future administration open to sustained attacks from a left-wing majority of Greens, Social Democrats and the Left Party.

Her other, far more likely, option, was to press ahead with talks scheduled for next Wednesday, in her attempts to form a so-called "grand coalition" with Mr Schröder's Social Democrats. Initial discussions between the two sides began auspiciously yesterday with both the Social Democrats and conservatives claiming that the way was open for "concrete discussions". Yet both parties remain deadlocked over who should become the next chancellor. Ms Merkel claims that, as her conservatives beat Mr Schröder's party by 417,000 votes in Sunday's election, she has the right to the job.

However, Mr Schröder has insisted he should stay in office. His party claims he should be given the job because, however unworkable, the election produced a left-of-centre parliamentary majority of Social Democrats, the Left Party and Greens. Mr Schröder has refused to form a coalition with the Left Party.

Germany's mass circulation Bild newspaper lampooned Mr Schröder over his refusal to renounce the chancellorship. The paper depicted him in a toga and cast in the role of a latterday Julius Caesar. "What is the matter with Gerhard Schröder. Does he think he is the eternal chancellor, like Caesar?" it asked.

Several commentators have suggested that the only way out of the dilemma would be if both candidates stepped down or agreed to take turns as chancellor for two years each.

The Social Democrats have signalled, however, that they might drop their demand that Mr Schröder keep his job. Michael Möller, the deputy leader of the party's parliamentary group, urged negotiators to disregard the chancellor issue in initial stage of discussions. "I would much prefer it if we started talking about policy issues. If we concentrate on these first, the best candidate for the chancellor's job will emerge," he said.