The Cable

(AFP) Chancellor Angela Merkel was scrambling to drag Germany out of crisis on Monday after high-stakes talks to form a new government collapsed, potentially forcing Europe's top economy into snap elections.

Germany now faces weeks, if not months, of paralysis with a lame-duck government that is unlikely to take bold policy action at home or on the European stage.

With no other viable coalition in sight, Germany may be forced to hold new elections that risk being as inconclusive as September's poll.

Merkel, whose liberal refugee policy has proved deeply divisive, had been forced to seek an alliance with an unlikely group of parties after the ballot left her without a majority.

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