Election of New CDU Leader Suggests German Policy Continuity
Fitch Ratings-Frankfurt/London-22 January 2021: The appointment of Germany’s Christian Democratic Party’s (CDU) new leader is consistent with our view that broad policy continuity on key fiscal and European issues is likely after September’s national elections, Fitch Ratings says. But precise policy choices will depend on the election outcome and in the near term remain highly dependent on the duration and severity of the coronavirus pandemic.
Armin Laschet, the prime minister of North Rhine-Westphalia, was elected leader of the governing CDU by delegates at a virtual party conference on 16 January, defeating Friedrich Merz in a run-off vote. Norbert Roettgen (chairman of the Bundestag’s foreign affairs committee) was eliminated in the first round.
Laschet positioned himself as the continuity candidate during the leadership contest triggered by the resignation of Annegret Kramp-Karrenbauer, who succeeded Angela Merkel (of whom Laschet is a strong ally) as CDU leader in 2018. A key challenge will be to bridge divisions between his centrist supporters and the party’s conservative wing, which favoured Merz. But the CDU’s endorsement of Laschet signals that its economic and fiscal policies should remain broadly in line with those of Merkel, as will its position on European and foreign affairs.
