Angela Merkel fourth term in doubt as coalition talks fail

A tired-looking Merkel said she would stay on as acting chancellor and consult President Frank-Walter Steinmeier on how to move forward

Efforts to form a three-way coalition government have failed, Chancellor Angela Merkel said on Monday, pitching Germany into its worst political crisis for decades, raising the prospect of new elections and casting doubt over her future.

The pro-business Free Democrats (FDP) withdrew from talks after more than four weeks of fruitless negotiations with Merkel's conservative bloc and the environmentalist Greens, saying there was not enough common ground.

With German leadership seen as crucial for a European Union grappling with governance reform and Britain's impending exit, FDP leader Christian Lindner's announcement that he was pulling out spooked investors and sent the