German Chancellor Angela Merkel has said she would prefer new elections to leading a minority government, after a breakdown in coalition talks plunged the country into political crisis. <br/><br/>The Chancellor also said she did not see any reason to resign from her post despite the failed negotiations. The FDP liberals pulled out of talks with Mrs Merkel's CDU/CSU bloc and the Greens. Germany President Frank-Walter Steinmeier urged parties to make compromises for the country's "well-being".Mrs Merkel faces her biggest challenge in 12 years as the Chancellor.