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Coalition government talks flop could force country into fresh elections

German Chancellor Angela Merkel at a past function: (Photo:Tobias Schwarz|AFP)

Chancellor Angela Merkel was left battling for political survival Monday after high-stakes talks to form a new government collapsed -- plunging Germany into a crisis that could see it hold fresh elections.

Europe's biggest economy now faces weeks, if not months of paralysis with a lame-duck government that is unlikely to take bold policy action.

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