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Mrs Merkel told a party meeting this morning: ”Europe needs a strong Germany, it is desirable to get a government in place quickly.”

She then added her acting government was able to carry on day to day business in Europe's biggest economy.

Mrs Merkel said she was prepared to talk to the Social Democrats (SPD) after the centre-left party reversed an earlier decision and said it was prepared to talk to Merkel's conservatives, but she stressed any talks should be based on mutual respect.

Members of Germany's Social Democrats (SPD) will likely approve a renewed coalition with Chancellor Merkel's conservatives if party leaders present a convincing proposal, a member of the party's executive leadership said on Saturday.

Niels Annen of the SPD, in an interview with the Passauer Neue Presse newspaper, called for quick action to form a new German government given a range of crises around the world, and said a "grand coalition" was an option that could not be excluded.