Odd Andersen/Agence France-Presse
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There are palpable fears in the political circle in Germany after talks to form a coalition government among four of the country’s seven parliamentary political parties collapsed shortly before midnight on Sunday.

Chancellor Angela Merkel appeared to be the biggest loser as parties pulled out of coalition talks.

Reports quoted Merkel as saying early Monday that the Free Democratic Party (FDP) had pulled out of talks with her Christian Democratic Party (CDU) the previous day.

While Merkel said she regretted the collapse of talks to form a government, she said she would steer Europe’s biggest economy through the crisis.

“As chancellor, I will do everything to ensure that this country comes out well through this difficult time,” she said.

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The German Chancellor’s center-right CDU lost 65 seats in September’s general election, preventing it from forming an outright majority, despite remaining the largest party in the German parliament, the Bundestag.

There had been hopes for a ‘Jamaica coalition’ — so called due to the parties’ colours mirroring that of the Jamaican flag — that combined Merkel’s CDU and its Bavarian sister party, the Christian Social Union (CSU), both black, the pro-business FDP, which are yellow, and Germany’s Greens party.

But according to Germany public broadcaster ARD, the parties were deeply divided over tax, immigration quotas and environmental policies.

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