I n Germany's general election Sunday, described as the most inconclusive in the country's postwar history, voters refused to give a clear-cut majority to any party. Earlier in the campaign, the opposition alliance of the Christian Democratic Union (CDU) and its sister party, the Christian Social Union (CSU), had maintained a significant lead over the center-left governing coalition of the Social Democratic Party (SPD) and the Green Party, but in the final stages of the campaign the SDP-Green alliance regained ground, with both camps fighting neck and neck.

The shape of a new government now hinges on how coalition talks develop in the next few weeks. The election was fought mainly on domestic economic issues, including high unemployment, jobs creation, stagnant growth and immigration. Ms. Angela Merkel, head of the conservative Christian Democrats, called for a strengthening of corporate prowess, saying that failures in the economic policy of the seven-year Schroeder administration had "weakened the Germany economy." On the other hand, Chancellor Schroeder, who puts a premium on social policies, countered the criticism, saying that his economic reform programs are producing results, and appealed for "sustained efforts toward reform."

Reform is the catchword. In this respect, there seem to be no decisive differences between the economic policies of the two main parties. This could open the way for policy accommodation between the two camps, given in particular the razor-thin difference in their voter support, with the CDU winning 35.2 percent of the vote compared with 34.3 percent of the SPD, according to the latest results (voting in one district, Dresden, has been postponed till early next month due to the death of a candidate).