Merkel confident for Germany's Sept 27. election

— Chancellor Angela Merkel says she still hopes to form a new center-right government after the national German election on Sept. 27, despite losses for her conservatives in weekend state elections.

Merkel's Christian Democrats lost majorities in two states in regional elections Sunday but performed much better in a third state. The losses were no surprise but were greater than expected.

Merkel says Monday says her party still has "every possibility of winning the federal election" and forming the next government in a coalition with the Free Democrats.

She says "We think is best for the country."

Merkel's party leads in national polls, while the Free Democrats are a pro-business opposition party. Merkel currently governs Germany in a "grand coalition" with the Social Democrats.

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