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German president says country faces situation not seen in decades after coalition talks fail ‘Situation unseen in decades’ – German president on failed coalition talks
(35 minutes later)
German President Frank-Walter Steinmeier says Germany is facing an unprecedented situation after coalition talks for the new government failed. German President Frank-Walter Steinmeier says Germany is facing a situation unseen in decades after coalition talks failed. He warned of "great concern" across Europe if the "strongest country" in the EU can't form a government.
Steinmeier said that he will be holding talks with the leaders of all parties involved in the discussions, along with German institutions. He stressed that all parties have a responsibility to try to form a government in the near future. “We are facing a situation which [we] did not face in the Federal Republic of Germany for almost 70 years,” Steinmeier said.
READ MORE: Euro crashes with Angela Merkel’s fourth term as chancellor in doubt Steinmeier said that he will be holding talks with the leaders of all parties involved in the discussions, along with German institutions. He also stressed that all parties have a responsibility to try to form a government in the near future.
The Free Democratic Party (FDP) walked out of marathon talks shortly before midnight on Sunday, with its leader, Christian Lindner, saying there was "no common basis of trust" between the FDP, German Chancellor Angela Merkel's center-right CDU party, and the Greens. He said it was "better not to govern than to govern badly."The Free Democratic Party (FDP) walked out of marathon talks shortly before midnight on Sunday, with its leader, Christian Lindner, saying there was "no common basis of trust" between the FDP, German Chancellor Angela Merkel's center-right CDU party, and the Greens. He said it was "better not to govern than to govern badly."
The walkout effectively led to the breakdown of the coalition talks and a potential attempt to form a majority government.The walkout effectively led to the breakdown of the coalition talks and a potential attempt to form a majority government.
Explaining the motives behind its walkout, the FDP pointed to what it sees as a lack of compromise from other parties on key issues including tax cuts, curbing red tape and education policy, according to the party’s negotiator, Joachim Stamp.Explaining the motives behind its walkout, the FDP pointed to what it sees as a lack of compromise from other parties on key issues including tax cuts, curbing red tape and education policy, according to the party’s negotiator, Joachim Stamp.
The current major partner of Merkel’s CDU, the Social Democratic Party (SPD), had earlier signaled it would not engage in another grand coalition. On Monday, SPD leader Martin Schuls reiterated the decison. The current major partner of Merkel’s CDU, the Social Democratic Party (SPD), had earlier signaled it would not engage in another grand coalition. On Monday, SPD leader Martin Schuls reiterated the decison. 
DETAILS TO FOLLOW Schulz also said that German voters, whom he referred to as "the sovereign," should be given the chance to "reassess what is going on" following the failed talks. He added that his party is not afraid of new elections, should they take place.