Merkel to huddle with party after bitter loss

German Chancellor Angela Merkel will be forced to size up her election year strategy Monday after a bitter defeat to the centre-left opposition in a cliffhanger state poll. In one of the tightest state races in recent memory, the Social Democrats and the Greens Sunday eked out a one-seat majority in Lower Saxony over the incumbent coalition of Merkel\'s Christian Democrats with the Free Democrats. After a suspense-packed night with broad implications for the September general election, the centre-left camp said it aimed to use its victory to create fresh momentum in its bid to deprive Merkel of a third four-year term. She was to meet her party and hold a news conference at 1145 GMT. \"It shows the race until September is far from over,\" the Social Democrats\' embattled challenger to Merkel, Peer Steinbrueck, said. Merkel, who campaigned hard for state premier David McAllister, a half-Scot seen as a potential successor to her, enjoys a strong lead in national polls due to her fierce defence of German interests in the eurozone crisis. But pundits said the state win could help shore up the battered campaign of the gaffe-prone Steinbrueck. After a series of regional poll setbacks, Merkel\'s Christian Democrats (CDU) were the strongest party with 36 percent of the vote. Their state coalition partners for the last decade, the pro-business Free Democrats (FDP), drew nearly 10 percent -- more than doubling many pollsters\' forecasts and tallying their best result in Lower Saxony in post-war history. BERLIN (AFP) - (AFP) - German Chancellor Angela Merkel will be forced to size up her election year strategy Monday after a bitter defeat to the centre-left opposition in a cliffhanger state poll. In one of the tightest state races in recent memory, the Social Democrats and the Greens Sunday eked out a one-seat majority in Lower Saxony over the incumbent coalition of Merkel\'s Christian Democrats with the Free Democrats. After a suspense-packed night with broad implications for the September general election, the centre-left camp said it aimed to use its victory to create fresh momentum in its bid to deprive Merkel of a third four-year term. She was to meet her party and hold a news conference at 1145 GMT. \"It shows the race until September is far from over,\" the Social Democrats\' embattled challenger to Merkel, Peer Steinbrueck, said. Merkel, who campaigned hard for state premier David McAllister, a half-Scot seen as a potential successor to her, enjoys a strong lead in national polls due to her fierce defence of German interests in the eurozone crisis. But pundits said the state win could help shore up the battered campaign of the gaffe-prone Steinbrueck. After a series of regional poll setbacks, Merkel\'s Christian Democrats (CDU) were the strongest party with 36 percent of the vote. Their state coalition partners for the last decade, the pro-business Free Democrats (FDP), drew nearly 10 percent -- more than doubling many pollsters\' forecasts and tallying their best result in Lower Saxony in post-war history. Berlin\'s daily Morgenpost said there were a number of lessons to draw from the vote. \"The CDU is not as strong as it feels. The FDP is not as dead as it looks. And a continuation of the black-yellow coalition in Berlin is no longer so unthinkable,\" it wrote, referring to Merkel\'s team. \"The only thing that is sure is that it will be tight.\" The centre-left Sueddeutsche Zeitung said the election granted both the flailing FDP and the beleaguered Social Democrats a possible new lease of life. \"The FDP now has time to recover, to sort itself out,\" it wrote, noting it was still fighting for survival with dismal national poll ratings. \"The SPD has the same task ahead.\" Steinbrueck, a former finance minister from Merkel\'s 2005-09 \"grand coalition\" government, was anointed by the SPD as its chancellor candidate late last year. But he has run into trouble with revelations that he made around 1.25 million euros ($1.66 million) over the last three years in speaking fees, and with comments that Merkel owed much of her popularity to her gender. Despite the narrow win, Steinbrueck admitted he had been of little help to his party in the key poll. \"The Social Democrats did not have tailwinds from Berlin,\" he said. \"I share a significant part of the responsibility.\" After Lower Saxony, only the southern state of Bavaria is expected to vote before the general election.