They have set a deadline of Sunday evening, with the option of extending into Monday or Tuesday.
On the agenda are detailed questions about how a repeat of the "grand coalition" or "GroKo" that has ruled since 2013 will shape healthcare, labour law, pensions and reform of the European Union and euro single currency.
Both sides are reluctant to compromise too much and risk losing support, but are equally fearful of going back to voters in repeat elections that could see a further rise of the far-right.
"I hope we can manage it," Merkel said Friday, warning however that there were still "a whole list of very serious points of disagreement".
At stake for Merkel -- still rated a "good" or "very good" choice for chancellor by 51 percent of respondents to the same poll -- is whether she leads a stable coalition into her fourth term, or risks a fragile minority government or new elections.
Social Democrats agreed to talks only after Merkel's soundings with two smaller parties, the ecologist Greens and the pro-business Free Democrats, fell through.
Challenged by rebels within his own ranks, SPD leader Martin Schulz has sought political cover by putting any final coalition deal to a vote by all 440,000 members.
Kevin Kuehnert, leader of the SPD youth wing, has become a standard bearer for opponents of a new deal with Merkel.
"This kind of politics was rewarded with a 14 percentage point drop (for CDU and SPD combined) last year, and I suspect things will continue that way" if the coalition materialises, he has said.
Merkel too faces grumbling among her troops, with more conservative voices accusing her of marching her Christian Democratic Union (CDU) too far into the political centre, giving up terrain to the AfD.
Meanwhile, the press has scented the end of an era approaching.
Eight years of GroKo under Merkel -- from 2005-09 and again from 2013-17 -- had shown that "the lowest common denominator achieves nothing as long as there is no overarching idea," commented Stefan Braun for the Sueddeutsche Zeitung.
Merkel and Schulz should offer honest, ambitious answers to the country's big challenges or "leave the way clear for new leaders or new elections".
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
