Berlin ? Germany’s opposition leader Angela Merkel and the chairman of Chancellor Gerhard Schroeder’s party made their first contacts with potential coalition partners Monday in a scramble for power after the country’s inconclusive election.

Voters denied both Schroeder and Merkel a majority, but each is demanding the chancellor’s office. Their struggle could last weeks, even as business leaders and economists warn action is needed to invigorate the economy.

Germany’s foreign policy – addressing such issues as Turkey’s bid for European Union membership, Iran’s nuclear program and U.S. relations – also remains on hold.

“Germany is paralyzed at the worst time for European diplomacy,” said leading French foreign affairs analyst Dominique Moisi. On Iraq and in dealings with China and Russia, Washington officials “were looking for a stronger, more united, cooperative Europe. Obviously, they are not going to have it.”