Why did talks between Angela Merkel’s party and the Free Democratic Party collapse in 2017?

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In 2017, following federal elections that left the Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), without a parliamentary majority, a lengthy period of coalition-building ensued. Although it appeared the Free Democratic Party (FDP) was poised to return to government, FDP leader Christian Lindner withdrew from the negotiations at the 11th hour.1

Lindner justified the decision by stating, "It is better not to govern than to govern wrongly," effectively ending the talks. This collapse left Germany facing the possibility of fresh elections, which ultimately prompted the Social Democratic Party (SPD) to reverse its earlier refusal to rejoin a coalition with Angela Merkel. Consequently, the CDU-CSU and the SPD proceeded to negotiate and form another grand coalition.123