Its a very complicated political situation in germany now.
Only few weeks ago it was expected by the so called analysists that the conservative pro-Bush CDU/CSU of Merkel would get nearly 50% and build with the FDP a coalition.
Schroeders anti-Bush socialists SPD was down at 27%.
A day before the elections a 42% for CDU and 31% for SPD was expected.
Yesterday it was quite a surprise.
Merkel got only 35.2% - a real catastrophy for her. Especially considering the fact that she has no 50% even with the FDP.
Schroeder on the other hand managed to get 34.3% - no one had expected this.
The worse thing is that the communists got 8% - in the former East Germany they got 25% of the votes. And the communists refuse to build any coalitions.
So there are only the following combinations left:
SPD + CDU/CSU
unlikely, because Schroeder only wants to join a coalition if he remains Chancellor of Germany. On the other hand the conservatives already started to damage "Angie" Merkel, blaming her for the bad result.
CDU/CSU + FDP + green party
so called "Jamaica-Coalition"

(CDU has Black colour, FDP yellow, Green - surprise, surprise - green)
Will be extremly difficult because green and FDP have many problems together. Not to mention the greens and the CSU.
SPD + FDP + green party
same problem here
SPD + green, minority tolerated by the communists
also unlikely because Schroeder and the leader of the communists, Lafontaine, hate each other.
new elections
Lets see what will happen.
But again: Yesterday was an extreme surprise. Merkel was already celebrated as the next german chancellor ruling with a solid FDP+CDU+CSU alliance.