I don't get it. If Merkel's party won a higher percentage of the vote, how can Schroeder possible be in the running to remain that the helm? I mean, why bother to vote if the person who got less of the votes can form a government and remain in power? Shouldn't the onus be on Merkel to form a government? I don't think I understand the German system very well. Pardon the ignorance.
The real problem for her is that all the parties on the right, when combined, yield fewer seats than taken by the parties on the left, which, when combined, do form a majority. The far left party is estranged from Schröder which is the only thing restraining a government being formed on the left.
If Schroder holds his nose and couples with Lafontaine, he will have to give up on most economic reforms which Germany must make to survive globalization but then, with the Greens, he will have more than enough seats.
If he looks to his right to cross the aisle, to the FDP, he can make reforms, but they have already publicly spurned him. We shall see.
Meanwhile, Merkel can cut a deal with the Greens, which means she will probably promise to oppose America in return for freedom on economic reforms. But, of course, she has to go courting in the enemy camp whether she deals with the Greens or tries for a grand coalition with Schröder's SPD party.
It is my view that both Germany and the right would not be served by a Merkel government without the power to effect meaningful reforms, which, lets face it, involve pain. In that event, let the left ride into the inevitable crisis and take over with a real mandate.