The three parties exploring a possible coalition in Germany face an early test of their willingness to compromise on Thursday when they try to hammer out a common stance on deeply divisive immigration and asylum policy, Reuters reports. 

German Chancellor Angela Merkel is trying to patch together a tricky three-way coalition after her party suffered bruising losses in a national election three weeks ago - losses that even some of her allies blame on her refugee policies. 

Germany’s demographic landscape changed overnight in 2015 with her decision, in the face of refugee flows on a scale not seen since World War Two, to open the borders to over a million migrants fleeing war in the Middle East and Africa. 

While some hailed the move as a humanitarian act, it was less popular in her own conservative camp, where many blame her for the subsequent surge in the anti-immigration Alternative for Germany party, which took seats from her bloc. 

Within her conservative bloc, the Bavarian Christian Social Union (CSU) is demanding a cap on refugee numbers, rejected by Merkel as unconstitutional. To her left, the Greens oppose what they see as a populist-driven tightening of asylum rules. 

With parties far apart, Christian Lindner, leader of the pro-business Free Democrats (FDP) warned that talks could rapidly descend into conflict with Greens on the sensitive matter of allowing family members to join migrants in Germany.