The Christian Democrats headed by Merkel, who opposes full Turkish membership in the European Union, won the most votes in Sunday's elections but fell short of a clear mandate as Chancellor Gerhard Schröder managed to pull his Social Democrats to within just one point difference and proclaim that he should head the next government.

"It did not happen as we feared," wrote the Turkish daily Aksam on Monday. The daily Milliyet said, "Merkel did not benefit from her anti-Turkish stance," while the Radikal newspaper added that the conservative bloc led by Merkel was in "a state of disillusion."

Turkey's aspirations for EU membership became a key issue in the elections, with Schröder backing membership and Merkel favoring a "privileged partnership" without full membership.

Grand coalition could help Turkey's bid

If Merkel is to become Germany's first female chancellor, she will need to find a parliamentary majority in a coalition that likely would also force her to water down plans to shake up the sluggish economy. Such a deal might also lead to a dampening of her strong opposition to Turkish membership in the European Union.

"Merkel used Turkey as an instrument for domestic issues," said Saban Disli, deputy chairman of Turkey's governing Justice and Development Party. "If she eventually does come to power ... she will have to change her opinions. Turkey is a very important country, not just economically but from a security point of view and for a dialogue between religions."

Turkish leaders at home and in Germany urged the 500,000 German citizens of Turkish origin to turn out in large numbers for Sunday's vote and make sure their position is heard.

EU membership talks set to being October 3

"Even if Merkel comes to power, she will have to deal with pressing internal issues and will not be able to obstruct the start of negotioations on October 3," wrote Soli Ozel, a columnist for the daily Sabah.

EU nations, including Germany, gave Turkey the green light to begin membership talks on October 3, but Ankara's refusal to recognize EU-member Cyprus have since clouded it's bid.

Most officials have said the talks with Turkey would open on time, no matter who wins the German elections. There is real concern in Turkey, however, that growing EU skepticism toward accepting the poor, populous, Muslim nation, could lead to a slowdown in talks.