Leading German conservatives have suggested that efforts to form a "grand coalition" with the Social Democrats (SPD) might fail after a shock decision by SPD leader Franz Muentefering to step down.
"We want to bring these negotiations to a successful conclusion, but one can't rule out that they will fail," said Mr Wolfgang Bosbach, the deputy conservative leader in parliament and a close ally of Christian Democrat leader Angela Merkel.
Mr Juergen Ruettgers, the powerful conservative state premier of North Rhine-Westphalia, urged the SPD to decide rapidly on their policy course but said it was unclear whether a power-sharing agreement with them was still viable.
Germany's conservatives and the SPD were forced into coalition talks after an inconclusive September 18th election left them with few viable alternatives for a stable parliamentary majority.
Those talks have now entered a crucial phase, with both camps under pressure to reach a consensus on policies before a self-imposed November 12th deadline.
Mr Muentefering, who was expected to become labour minister and vice chancellor in a coalition government, had been seen as a level-headed broker capable of holding together his own fractious party and forging consensus with the conservatives.
But he announced Monday he would step aside as SPD chairman after party members voted down his candidate for the number two job, throwing his own party into crisis and complicating the already formidable task of creating a bipartisan government.
The SPD must now settle on a replacement for Mr Muentefering and decide whether it wants to continue down the centrist course that he and outgoing Chancellor Gerhard Schröeder steered - all while conducting coalition talks with its longtime rivals.