"I am not exaggerating when I say that the world is waiting for us to be able to act," she added.
Merkel's remarks come just a few days after, the chairman of the Social Democratic Party called party members to support him on forming a "grand coalition" with Chancellor Angela Merkel's party.
Negotiations between the two parties are scheduled for Wednesday.
The SPD initially refused to enter a new coalition with Merkel's part butlater changed their mind after the Christian Democrats’ coalition talks with two smaller parties fell through.
The political uncertainty in Germany is a result the September vote in which Merkel’s party lost their parliamentary majority.
"A minority government would, in any case, of course not be a stable government," Merkel concluded.
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