FACTBOX: What happens now after German elections?

(Reuters) - German voters gave Chancellor Angela Merkel a second term in an election on Sunday and a mandate to form a new government with the business-friendly Free Democrats (FDP) that is expected to cut taxes to boost growth.

Here is what is likely to happen next:

COALITION TALKS

With a slim but clear center-right majority, Merkel will start talks with the FDP, within days. It could, however, take several weeks for the parties to share out cabinet posts and forge the policy compromises necessary to seal a coalition deal.

HOW LONG COULD COALITION TALKS LAST? German coalition deals contain concrete policies to be implemented during a government's term, making negotiations complex.

However the constitution stipulates a new parliament must meet at the latest 30 days after the election, and typically coalition deals have been struck by then. If there is a clear majority, the chancellor is usually appointed during the first meeting of parliament.

WHO GOVERNS IN THE INTERIM?

Until a new government is sworn in, Merkel and her current cabinet continue in power.

(Edited by Mark Trevelyan)