Schroeder stands firm as Merkel inches ahead

CONSERVATIVE challenger Angela Merkel claimed a mandate to form Germany’s next government - but an exuberant chancellor Gerhard Schroeder refused to concede defeat after his party did better than expected in yesterday’s election and insisted that he should lead the next administration.

Ms Merkel failed to get the convincing majority she needed to govern with her preferred coalition partners, the small, pro-business Free Democrats. Her Christian Democrats held a narrow lead over Schroeder’s Social Democrats late last night, with votes counted from 80% of districts.

If she is to become Germany’s first female chancellor, she would now need to find a parliamentary majority in a coalition that would force her to water down plans to shake up the sluggish economy.