Macro Focus - November 2018
Time to replace Merkel as leader of the center-right CDU
  • Top candidates provide different direction for CDU in the future
  • The government parties struggle in polls, while the Greens party surges
  • Whoever wins, the new leader will face tough political and economic decisions

The battle to inherit Angela Merkel´s crown as the leader of Germany´s largest political party (and possibly as a chancellor) is on. In a closely followed election, the party members will soon choose the new leader of the center-right CDU from three candidates, who all have somewhat differing views on the direction the party, the country, and Europe should take. The new leader will face difficult decisions in shaping the public debate and policies at both the country and European levels. There are signs that the German economy is already slowing, and an increasing numbers of voices are saying that it needs to be revitalised to meet future challenges. Who is leading the euro area's largest economy is important not only for Germany but also for the whole EU and the euro area, as the route for politics and economic policy in Europe is largely determined by the political leadership in Germany. The survival of the current government and Ms. Merkel as its leader will also largely depend on this election outcome.

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For more information about this report, please contact:

Knut Hallberg,+46 (0)76 10 33 930, Knut.Hallberg@swedbank.se

Laura Galdikienė, +370 5 258 2275, Laura.Galdikiene@swedbank.lt

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