By Madeline Chambers
BERLIN, June 7 (Reuters) - Chancellor Angela Merkel's conservatives remained Germany's strongest party despite registering losses in European polls on Sunday, boosting her bid to retain power in September's federal election.
Merkel's favoured coalition partner, the pro-business Free Democrat party (FDP), was the biggest winner in Sunday's vote, pointing to a possible alliance between the two centre-right parties after the autumn election.
'If these results were repeated in September, Merkel could just about form a coalition with the FDP, ' said Dietmar Herz, a politics professor at Erfurt University.
Support for the Social Democrats (SPD), who have shared power with Merkel's conservatives in a loveless coalition since 2005, languished at record lows in a blow to Foreign Minister Frank-Walter Steinmeier's hopes of becoming chancellor.
Merkel has failed to mobilise some traditional supporters who think she has moved too far leftwards in tackling the financial crisis.
In the last few weeks there has been a major debate on state aid for struggling companies, such as carmaker Opel and retail group Arcandor, with some conservatives arguing it is better in the long run to allow some companies to fail.
A stronger-than-expected showing for the sister party of Merkel's CDU, Bavaria's Christian Social Union (CSU), has bolstered German Economy Minister Karl-Theodor zu Guttenberg who has argued strongly against state bailouts of ailing companies.
'Guttenberg's cautious approach towards spending taxpayers' money on companies has paid off,' said Rainald Becker a political commentator for SWR television.
Support for Merkel's Christian Democrats (CDU) and Bavaria's CSU fell by 6.5 percentage points to 38.0 percent from 2004, according to projections based on exit polls from ARD television.
The FDP rose 4.8 points to 10.9 percent vote while the SPD fell 0.7 points to its lowest ever result, 20.8 percent.
'There's no way to make this look good, it is a disappointing outcome,' said Steinmeier. 'Obviously we did not succeed in getting our supporters out to vote.'
In the 2004 European election, the conservatives had benefited from a backlash against the SPD due to labour reforms introduced by former SPD Chancellor Gerhard Schroeder.
Turnout was also a record low, at 42.5 percent. Keywords: EUROPE ELECTION/GERMANY (editing by Janet McBride; madeline.chambers@reuters.com; +49 30 2888 5230; Reuters Messaging: ann.chambers.reuters.net@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BERLIN, June 7 (Reuters) - Chancellor Angela Merkel's conservatives remained Germany's strongest party despite registering losses in European polls on Sunday, boosting her bid to retain power in September's federal election.
Merkel's favoured coalition partner, the pro-business Free Democrat party (FDP), was the biggest winner in Sunday's vote, pointing to a possible alliance between the two centre-right parties after the autumn election.
'If these results were repeated in September, Merkel could just about form a coalition with the FDP, ' said Dietmar Herz, a politics professor at Erfurt University.
Support for the Social Democrats (SPD), who have shared power with Merkel's conservatives in a loveless coalition since 2005, languished at record lows in a blow to Foreign Minister Frank-Walter Steinmeier's hopes of becoming chancellor.
Merkel has failed to mobilise some traditional supporters who think she has moved too far leftwards in tackling the financial crisis.
In the last few weeks there has been a major debate on state aid for struggling companies, such as carmaker Opel and retail group Arcandor, with some conservatives arguing it is better in the long run to allow some companies to fail.
A stronger-than-expected showing for the sister party of Merkel's CDU, Bavaria's Christian Social Union (CSU), has bolstered German Economy Minister Karl-Theodor zu Guttenberg who has argued strongly against state bailouts of ailing companies.
'Guttenberg's cautious approach towards spending taxpayers' money on companies has paid off,' said Rainald Becker a political commentator for SWR television.
Support for Merkel's Christian Democrats (CDU) and Bavaria's CSU fell by 6.5 percentage points to 38.0 percent from 2004, according to projections based on exit polls from ARD television.
The FDP rose 4.8 points to 10.9 percent vote while the SPD fell 0.7 points to its lowest ever result, 20.8 percent.
'There's no way to make this look good, it is a disappointing outcome,' said Steinmeier. 'Obviously we did not succeed in getting our supporters out to vote.'
In the 2004 European election, the conservatives had benefited from a backlash against the SPD due to labour reforms introduced by former SPD Chancellor Gerhard Schroeder.
Turnout was also a record low, at 42.5 percent. Keywords: EUROPE ELECTION/GERMANY (editing by Janet McBride; madeline.chambers@reuters.com; +49 30 2888 5230; Reuters Messaging: ann.chambers.reuters.net@reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.