Merkel ally urges Social Democrats to consider new German 'grand coalition'

Germany's Social Democrats (SPD) should reconsider their opposition to joining a new "grand coalition" with Angela Merkel's conservatives because Europe needs a stable government in Berlin, a senior ally of the chancellor said on Thursday.

Germany is facing the worst political crisis of its modern history after Merkel's efforts to forge a three-way coalition with the pro-business Free Democrats (FDP) and Greens collapsed last weekend, raising fears across Europe of a prolonged leadership vacuum in the continent's economic powerhouse.

The SPD has governed in a coalition under Merkel since 2013 but said it wanted to go into opposition after suffering its worst result of the postwar period in the September 24 election.

Some in the SPD, however, are now urging party leader Martin Schulz to reconsider, a view echoed on Thursday by Volker Kauder, leader of Merkel's conservative parliamentary group in the Bundestag lower house of parliament.

UCJ, UNILORIN.