It's not yet clear what the result of the latest talks between Merkel's CDU and the SPD would be. And even if formal talks go ahead, there's no guarantee a coalition will happen. There's still a lot of opposition inside the SPD.

Merkel has ruled with the SPD in a sometimes unwieldy grand coalition - or GroKo, - in two of her three previous terms in office. But both parties bled support in the September election. The SPD suffered its worst result since 1949. Many rank-and-file fear a repeat grand coalition would further diminish the identity of the party. A survey by German media shows that 50 percent of SPD members favor a grand coalition, while 49 percent oppose it. The same poll also found that only 45 percent of German citizens view a new GroKo positively, while 52 percent do not.