Germany is facing a likely period of political deadlock after talks to form a coalition government among four of the country's seven parliamentary political parties fell apart shortly before midnight on Sunday.

Chancellor Angela Merkel told reporters early Monday 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.