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According to Deutsche Bank analysts, in the upcoming CDU conference and the upcoming SPD leadership result in Germany, which is going to be announced on Sunday, the outcome of the leadership race is hard to predict, but it could have implications for the fate of the country’s grand coalition.

Key Quotes

“A victory for Scholz and Geywitz would support their baseline of the coalition finishing its term of office in 2021, though they write that a win for Walter-Borjans and Esken wouldn’t automatically lead to a government collapse either. Indeed, a reason for both of the coalition parties to keep the government on the road is that current polls show they’d fall short of a majority.”