Schulz's announcement came after a turbulent week for him. Last Wednesday, the SPD reached an agreement with Merkel's Union in formal government coalition negotiations, a move likely to end the longest ever new government vacuum after the Sept. 24 federal elections.
However, Schulz announced two days later that he gave up the bid for foreign minister in the new government after he was heavily criticized by his party comrades for it as he previously said he wouldn't serve in the next German government.
Before the elections, Schulz said the SPD would not form another grand coalition with the Union. But he changed minds after the Union failed to form the government with two small parties.
Schulz, who is also former European Parliament president, was elected as SPD chairman with unanimous votes in March, but SPD suffered the worst election result since 1949.
The SPD is currently divided over whether to form a renewed "grand coalition". Despite the deal reached between the two parties, it is subject to the vote of SPD's 464,000 party members in early March.
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