SPD delegates vote to start formal talks on 'grand coalition'

Delegates from Germany's Socialist SPD party voted on Sunday to pursue formal coalition talks with the centre-right CDU/CSU parties led by Chancellor Angela Merkel.

Leaders in other European capitals sighed with relief at the result, with Italian Prime Minister hailing the result as a "step forward for Europe's future".

Had delegates voted against the measure, the country would have headed towards another round of elections at which the SPD was expected to fare even worse.

Nevertheless, the result of any talks with the CDU/CSU would still need to be put to a ballot by all SPD members, meaning the risk of new elections had not yet been completely exorcised.

In fact, the motion in favour of holding talks only won after the SPD's leaders pledged to clinch further concessions from Merkel's supporters on healthcare, refugees's families and on limiting layoffs of temporary workers in exchange.

At the September elections, the SPD garnered its worst result of the post war period in what some party members believed was the direct result of having tied their fortunes too closely to those of the CDU/CSU.