In September, Merkel`s conservatives suffered their worst election result since 1949 as the far-right Alternative for Germany (AfD) saw a surge in support. The CDU and its Bavarian sister-party the Christian Social Union (CSU) won 33 percent of the vote, but that was down from 41.5 percent in the 2013 election.
Following the collapse of coalition talks, Merkel said Monday that she would rather a new snap election than lead a minority government, and that Germany is stable despite doubts over the next leadership.
Otto Fricke, a member of the Federal Board of the pro-business FDP — the party that decided to walk out from the negotiations — told CNBC Tuesday that Merkel is still able to lead Europe, despite the political impasse.
The opinion of Germany is crucial for European policy making. As the largest euro economy, Germany has a strong influence to determine the future of Brexit, the deepening of the euro zone as well as debt restructuring for Greece, among other issues.
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