Angela Merkel insisted she will not resign despite the breakdown of talks on forming a coalition government on Sunday night and she would run again as chancellor if new elections were held, saying “Germany needs stability”.
The government crisis has left her future as chancellor hanging in the balance, plunging the country and Europe into a new era of uncertainty.
It unsettled the euro which had a volatile session, falling to $1.1723 against the dollar during Asian trading hours before rallying to $1.1808 — only to retreat once more to $1.1742 by midday in New York, down 0.4 per cent on the day.
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