Germany’s business-friendly Free Democrats (FDP) on Monday followed its prospective partners, the Social Democrats (SPD) and Greens, in giving a green light to three-way coalition negotiations to form the next government, an FDP source said.

The FDP federal leadership and members of parliament voted in favour of starting negotiations in earnest following initial explorative meetings, which could see the SPD’s Olaf Scholz succeed Angela Merkel as chancellor.

The centre-left SPD and ecological Greens had already approved starting talks.

The targeted “traffic light” alliance – named after the parties’ red, yellow and green colours – would be led by the SPD which came first in last month’s election.