Rivals hold talks on who will run Germany

GERHARD Schröder, the German chancellor, and Angela Merkel, the conservative leader, were due to meet last night to try to resolve a bitter row over who should lead Germany and lay the foundations of a coalition government of their rival parties.

But a spokesman for Mr Schrder's Social Democrats (SPD) said the two sides were not expected to announce any accord after the talks and a further meeting was planned for today.

A deal on Germany's next chancellor would pave the way for detailed coalition negotiations which are likely to drag on into November.

Three weeks after an election which gave neither Ms Merkel's Christian Democrats (CDU) nor Mr Schrder's SPD enough votes to rule with their allies, analysts predict they will eventually strike a deal vaulting Ms Merkel into the chancellery and giving the SPD key ministerial posts.

Gnther Oettinger, the CDU premier in the state of Baden-Wrttemberg, said: "I believe that with goodwill on the part of all participants we can get a solution and a result."

Last night's meeting in Berlin was to be attended only by Mr Schrder, Franz Mntefering, the SPD chairman, Ms Merkel and Edmund Stoiber, head of the CDU's Bavarian sister party, the Christian Social Union.