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Edition: U.S. Article Comments (0) Save Email Print Reprints Most Popular Most Shared WRAPUP 4-BP fails to plug oil well with 'top kill' 29 May 2010 WRAPUP 2-U.S. Gulf demands BP, govt do more to halt oil spill 11:06am EDT Bankruptcy talk spreads among Calif. muni officials 27 May 2010 Hollywood hellraiser Dennis Hopper dead at 74 | Video 29 May 2010 Gulf demands BP and government do more to halt oil spill | Video 11:28am EDT BP well disaster stuns hardened oil men 27 May 2010 Berkshire confirms Buffett subpoenaed to testify 28 May 2010 China urges region to step back from Korea clash | Video 10:54am EDT Israel rejects call to join anti-nuclear treaty 29 May 2010 Business Books: Why Russia and China will eat your lunch 28 May 2010 U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Bankruptcy talk spreads among Calif. muni officials 27 May 2010 Business Books: Why Russia and China will eat your lunch 28 May 2010 Israel rejects call to join anti-nuclear treaty 29 May 2010 Gulf demands BP and government do more to halt oil spill | Video 11:28am EDT Hollywood hellraiser Dennis Hopper dead at 74 | Video 29 May 2010 WRAPUP 4-BP fails to plug oil well with 'top kill' 29 May 2010 Pakistan's Facebook ban drives minister to Twitter 26 May 2010 Justin Bieber among black entertainment nominees 18 May 2010 WRAPUP 2-U.S. Gulf demands BP, govt do more to halt oil spill 11:06am EDT German coalition partners turn rivals in key state Dave Graham BERLIN Sun May 30, 2010 10:34am EDT BERLIN (Reuters) - Germany's ruling parties have become rivals to form a government with the Social Democrats in a key western state, a development which is likely to deepen tensions in Chancellor Angela Merkel's embattled coalition. World | Germany Merkel's conservative Christian Democrats (CDU) had shared power in North Rhine-Westphalia (NRW) with their federal coalition partner, the Free Democrats (FDP) of Foreign Minister Guido Westerwelle, until an inconclusive vote on May 9. Having lost their majority, both sides have now signaled they could work with the center-left Social Democrats (SPD) in NRW, Germany's most populous state, even though it would complicate policy in Berlin and the FDP had explicitly ruled out such an option before the vote. The showdown in NRW follows weeks of unrest in Merkel's government, castigated at home for its domestic squabbles and condemned abroad for its handling of the euro crisis -- raising new questions about whether it can last a full four-year term. Westerwelle has repeatedly rebuffed overtures to work with the SPD in recent years, but he suggested at the weekend that such a link might be possible in NRW. "We'll have to wait and see which coalition we get in North Rhine-Westphalia," he told newspaper Welt am Sonntag, welcoming the fact that the SPD had decided against a coalition with the Left party in NRW. The NRW talks come against the backdrop of government efforts to agree how to consolidate public finances, already a contentious issue inside the coalition. Merkel's cabinet will meet to discuss the planned overhaul on June 6-7. Westerwelle's apparent opening to the SPD also follows a plunge in support for his party, whose hopes of cutting taxes were dashed by Merkel a day after the NRW vote. "It looks like Westerwelle is annoyed with Merkel," said Gero Neugebauer, a political scientist at Berlin's Free University. "If the FDP were to enter a coalition with the SPD in NRW, Westerwelle could use it to put pressure on Merkel." "This would have an impact on federal policy." COALITION WORRIES The NRW vote put an end to Merkel's majority in the Bundesrat upper house of parliament, jeopardizing central planks of the government's reform agenda and its ability to pass legislation designed to alleviate the euro zone crisis. If the FDP helped the SPD to form a so-called "traffic light" coalition with the Greens in NRW, it could give Westerwelle more leverage on policy in Berlin, Neugebauer said. But it remained to be seen whether the FDP could work with the Greens, he added. Until now, the most likely outcome had appeared to be a "grand coalition" in NRW between the SPD and CDU. But the parties have had trouble resolving differences over who would run the state, with the SPD reluctant to join a government under incumbent premier Juergen Ruettgers, whose CDU won the most support, but only by a few thousand votes. A deal with the FDP and Greens would allow the Social Democrats, as strongest party, to replace Ruettgers with one of their own and retake control of the bellwether state after a five-year hiatus. Neugebauer said the widening rift in Berlin would inevitably raise questions about whether Merkel's government, just seven months old, would serve out a full term in office. "I never thought the government would get into this much trouble so quickly," said Neugebauer. "Merkel has failed to get the competition between her party and the FDP under control." Reflecting the unease in Berlin, Horst Seehofer, head of the CDU's sister party, Bavaria's Christian Social Union, hinted at the weekend that the government's days could be numbered. "The future of the coalition will be decided in the coming week," Seehofer was quoted as saying by Welt am Sonntag. (Editing by Noah Barkin) World Germany Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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