• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
LeadershipGermany

Angela Merkel’s Epic Fail Is Bad for Germany, Worse for Europe

By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
By
Geoffrey Smith
Geoffrey Smith
Down Arrow Button Icon
November 20, 2017, 7:29 AM ET

Let no one be in any doubt: the responsibility for the breakdown of Germany’s coalition talks lies with Angela Merkel, and her failure has brought the end of her political career much closer.

Given Merkel’s success in delivering full employment at home and broadly reconciling Europe to German leadership over the last decade, that’s bad for Germany.

It’s even worse for Europe, given her success in holding the Eurozone together, in stiffening Europe’s spine in the face of Vladimir Putin’s provocations, and in leading a coherent defense of the EU’s integrity against populist surges from the U.K. to Poland and Italy.

Read: Angela Merkel’s Failed Coalition Talks Send Germany into Political Turmoil

Most of the criticism in Germany this morning is being aimed at the pro-business Free Democratic Party, whose leader Christian Lindner triggered the collapse of talks by walking out late on Sunday evening, in a huff over immigration, tax cuts, and environmental policy. But the reality is that a strong leader at the helm of Merkel’s Christian Democratic bloc, which polled 32.9% in September compared to the FDP’s 10.7%, would never have allowed the tail to believe it could wag the dog.

The source of that weakness is, ultimately, the 2015 migrant crisis. Merkel’s ‘welcome policy’—a huge shift to the center for what is notionally Europe’s largest conservative party—left a gap on the right wing that has been filled by the Alternative for Germany (AfD). Anxiety over further losses to the AfD, especially at next year’s state elections in Bavaria, has stopped Merkel imposing her more liberal world view on her uppity junior partners.

What happens next is out of Merkel’s control. The Bundestag will have three chances to elect a Chancellor over the coming weeks. The first two rounds of voting would demand an majority of votes, something that Merkel doesn’t have. After the third vote, Germany’s President, Frank Walter Steinmeier, can either appoint the CDU/CSU leader to head a minority government, or dissolve the chamber and call new elections (something that would be a first for the Federal Republic).

Read: A Chastened Angela Merkel Braces for a Coalition Tussle

Germans may prefer a minority government to new elections, with or without the Greens who were the other party to the coalition talks. The corollary of that is an enfeebled fin de règne in which Merkel defends a centrist legacy against attacks from both sides, accompanied by a gradual loss of party discipline as potential successors jockey for position.

Some such as France’s new President Emmanuel Macron may see that as an opportunity to restore a balance within Europe. In reality, however, the EU has no substitute for German leadership. Without a clear voice from Berlin, the EU will simply find it harder to articulate policies to deal with the suppression of civil rights in central Europe, the splintering of the single market through Brexit and—heaven help us—a possible renewal of the Eurozone crisis amid as global interest rates turn higher.

For all his misplaced self-importance, Lindner’s diagnosis last night went to the heart of German and European political divisions that are only being papered over by an admittedly strong upswing in the economic cycle.

Read: At 39, French President Emmanuel Macron Is Just Getting Started

“The four partners in the conversation weren’t able to develop a common vision for the modernization of our country or, above all, a common basis of trust,” Lindner said. “We don’t know what’s store for Germany, in Europe and in the world, in the coming years, but if four partners aren’t able to work out a common plan even for what can be foreseen…that doesn’t suggest that they will be able to react appropriately to what can’t be foreseen.”

But the one thing that virtually no one had foreseen was that Merkel, the master of compromise, would suddenly lose her touch. If this were just the waning of a single politician’s star, the consequences might not be so serious. The worry is that the Federal Republic’s proud 70-year tradition of constructive consensus-building is under threat too, and that the legacy of 2015 is a Germany that has become fundamentally less predictable and harder to govern. And the consequences of that will be felt far beyond Germany’s borders.

About the Author
By Geoffrey Smith
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Cheerful young man
SuccessWealth
Billionaire Jenny Just says she could have saved ‘10 years of losses’ if she had learned this skill sooner from playing poker
By Preston ForeFebruary 9, 2026
1 hour ago
David Risher, wearing a patterned shirt, speaks in front of a bright magenta background.
C-SuiteLyft
Lyft CEO David Risher is still a driver for the company: It made him realize being even one minute late could cost the customer their job
By Sasha RogelbergFebruary 9, 2026
2 hours ago
Valentines Day balloons
Arts & EntertainmentCulture
Meet the women ditching their husbands for ‘Galentine’s Day,’ with no men allowed ‘unless the bartender happens to be male’
By Alicia Rancilio and The Associated PressFebruary 9, 2026
2 hours ago
A man walks by the San Francisco Unified School District administrative building.
North AmericaSan Francisco
Classrooms close as San Francisco teachers launch first public school strike in nearly 50 years
By The Associated PressFebruary 9, 2026
2 hours ago
AIMeta
As billionaires bail, Mark Zuckerberg doubles down on California with $50 million donation
By Sydney LakeFebruary 9, 2026
3 hours ago
Sam Darnold #14 of the Seattle Seahawks
SuccessCareers
Super Bowl champion says he learned resilience from his plumber dad and PE teacher mom: ‘As long as you believe in yourself, anything is possible’
By Emma BurleighFebruary 9, 2026
3 hours ago

Most Popular

placeholder alt text
Economy
Elon Musk warns the U.S. is '1,000% going to go bankrupt' unless AI and robotics save the economy from crushing debt
By Jason MaFebruary 7, 2026
2 days ago
placeholder alt text
Economy
Russian officials are warning Putin that a financial crisis could arrive this summer, report says, while his war on Ukraine becomes too big to fail
By Jason MaFebruary 8, 2026
22 hours ago
placeholder alt text
Commentary
America marks its 250th birthday with a fading dream—the first time that younger generations will make less than their parents
By Mark Robert Rank and The ConversationFebruary 8, 2026
1 day ago
placeholder alt text
Commentary
We studied 70 countries' economic data for the last 60 years and something big about market crashes changed 25 years ago
By Josh Ederington, Jenny Minier and The ConversationFebruary 8, 2026
1 day ago
placeholder alt text
Economy
China might be beginning to back away from U.S. debt as investors get nervous about overexposure to American assets
By Eleanor PringleFebruary 9, 2026
8 hours ago
placeholder alt text
Success
Gen Z Patriots quarterback Drake Maye still drives a 2015 pickup truck even after it broke down on the highway—despite his $37 million contract
By Sasha RogelbergFebruary 7, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.