New CDU leader faces coalition shifts and power struggle

ANNEGRET Kramp-Karrenbauer, the new leader of Germany's principal governing party, faces a complex struggle to impose her will on her fractious Christian Democratic Union (CDU). She will pursue a more conservative path in key areas compared with still-Chancellor Angela Merkel. This has consequences for policies to stabilise the euro.

"AKK" is a long-time Merkel ally and, more recently, her designated successor. How well she masters her shorter-term tasks will have a crucial bearing on whether, when and how she takes over the chancellorship, possibly as early as next year in what would have to be a partly stage-managed transition.

The CDU's right has voiced unease over policies in the 19-member euro area. Yet French-speaking and -sympathising AKK is not expected to depart from Mrs Merkel's line of stepping away from firm backing for Jens Weidmann, the monetarily orthodox Bundesbank president, in the race to succeed Mario Draghi as head of the European Central Bank in November 2019.