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The Merkel Era Is Ending—What It Means for the German Government

Kirkegaard J.F., and Zettelmeyer J., (2018), “The Merkel Era Is Ending—What It Means for the German Government”, Peterson Institute for International Economics, 30 Οκτωβρίου

Chancellor Angela Merkel’s abrupt announcement that she would not seek reelection as leader of the Christian Democratic Union (CDU) constitutes the beginning of the end of the Merkel era. What does this mean for the German government? Contrary to what one might expect, it is more likely to stabilize than to destabilize the current governing coalition in Berlin. At the same time, it will reduce Merkel’s ability to lead on euro area issues that do not command wide consensus within her party. On Germany’s broader foreign policy direction, finally, the announcement has no impact.

Another heavy CDU defeat in regional elections in Hessen prompted Merkel to lay out a multifaceted plan for herself, her party, and her government. She will not be a candidate in the next CDU leadership election in December. At the same time, she firmly intends to remain chancellor until the next regular parliamentary election in 2021, but not beyond. She will not be a candidate (even for the Bundestag) in 2021 or indeed in the event of early elections—i.e., if the current government collapses prematurely. And she is not interested in any other political office, including any EU-level office.

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