Germany swings into election countdown next week whenChancellor Angela Merkel and her chief challenger rally their party faithfulfor a campaign likely shaped by how hard the euro crisis hits German wallets.Merkel, 58, will seek to fire up her conservative Christian Democrats (CDU) attheir two-day party conference in the northern city of Hanover from December 4,eyeing a third term as chancellor in autumn 2013. Opposing her from the centre-leftis Peer Steinbrueck, 65, whose Social Democrats (SPD) already faced an uphillstruggle to unseat arguably Europe's most influential leader even before theirleading light became embroiled in a nagging fees-for-lectures debate.
Known as a straight talker, Steinbrueck, a finance ministerunder Merkel in a former "grand coalition", will address the SPDrank-and-file in Hanover on December 9, with polls showing a significant CDUlead. While the general elections, whose date has not yet been set but must beheld next September or October, are expected to usher in the third CDU-ledcoalition since 2005, its likely partner is less clear.
After historically scooping nearly 15 percent of the 2009vote, Merkel's current junior partner, the pro-business Free Democrats haveplummeted in the opinion polls to below the five percent level required toenter parliament. Vilified in parts of southern Europe over her pro-austeritymantra, Merkel has become Europe's 'go-to' leader at the helm of thecrisis-wracked bloc's top economy, and, at home has long been Germany's mostpopular politician. Steinbrueck has been dogged, since being pickedend-September, by a cacophony of questions about the 1.25 million euros he madefrom speeches on the side, prompting news weekly Spiegel online to dub him"The Wrong Candidate".
With the focus so far on his earnings rather than hispolicies he was roundly punished in the polls earlier this month, his approvalratings slumping nine points from October, while bickering within Merkel's fractiouscoalition has not dampened approval of her handling of the euro crisis.
Analysts say the financial rollercoaster that has broughtEurope to its knees over the last three years will be a hot-button issue inGermany's election campaign. And the longer Europe remains mired in crisis, thebetter it could be for Merkel because "in a crisis situation thepopulation stands more firmly behind her", political scientist GerdLangguth said. However he warned of a possible backlash if aid to pull Greeceback from the brink of bankruptcy is deemed too costly.
With unemployment rising and slowing growth, Germany isshowing signs that the crisis is taking an increasingly heavy toll after havingso far proved more resilient than its neighbours. However the SPD faces a "handicap"in voters' eyes from the lack of a clear political distinction between the twoparties which are close in their stances on a number of issues. And quickpolitical changes of heart also hold no fear for Merkel.
