Germany paralysed in leadership wrangle

CHANCELLOR Gerhard Schroeder and opposition leader Angela Merkel held their first face-to-face talks yesterday to wrangle over their rival claims to lead Germany out of political paralysis.

Ms Merkel said her conservative Christian Democrats and Schroeder's Social Democrats agreed to further coalition talks next week but disagreed over who has mandate to run Germany.

Ms Merkel's conservatives narrowly beat Schroeder's party in Sunday's parliamentary balloting and ended his seven-year coalition with the Greens.