German parties are preparing for early elections

Subject

Update on the German government.

Significance

Just over one year after the grand coalition between the Christian Democratic Union (CDU), its Bavarian sister party the Christian Social Union (CSU) and the Social Democratic Party (SPD) was renewed, all three parties are preparing for its breakdown by sharpening their profiles.

Impacts

• Conflicts between the coalition parties may deepen if deteriorating economic conditions force hard budgetary choices.
• Chancellor Angela Merkel’s international influence is likely to decline as her domestic position weakens.
• Low poll ratings could moderate the parties’ desire for early elections.