Merkel's ebbing power boosts Theresa May's EU leverage

GERMAN Chancellor Angela Merkel's ebbing power further complicates the European Central Bank's (ECB) growth policies and strengthens Britain's negotiating leverage in the psychological and economic battle over the UK's European Union (EU) withdrawal.

The anti-immigration, anti-euro Alternative for Germany (AfD) on Sunday forced Mrs Merkel's ruling centre-right Christian Democratic Union (CDU) into third place in elections in the idyllic yet relatively impoverished eastern state of Mecklenburg-Vorpommern.

Mrs Merkel's humiliation in her electoral home region, especially the rejection of her liberalism on refugees, gave victory to the Social Democrats, the chancellor's Berlin coalition partner, gearing up to oppose her in next autumn's general election.