German SPD expects to lead new coalition this year as talks deepen

BERLIN, Oct 11 (Reuters) - Germany’s Social Democrats began in-depth exploratory coalition talks on Monday with two smaller parties and expressed confidence that the three would form a new government this year following an inconclusive national election.

The centre-left Social Democrats (SPD) narrowly beat the conservatives, whose outgoing Chancellor Angela Merkel has governed since 2005, in the Sept. 26 federal ballot, but did not win a majority.

The SPD is seeking to form a coalition with the Greens and the business-friendly Free Democrats (FDP), which finished third and fourth respectively in the election.

SPD vice chairman Kevin Kuehnert expressed optimism that a “traffic light” coalition - named after the party colours of the SPD, the FDP and the Greens - would be formed this year.

“I am very firmly assuming that this will happen,” he told broadcaster ARD. “The talks have started well, very trusting.”