German Domestic Politics and the Eurozone Crisis

Germany's land of Hamburg will hold an election Feb. 20, 2011, after a political crisis led to the dissolution of its parliament. The next month, three other laender will hold elections. The domestic political situation will distract Berlin from other matters, particularly as German Chancellor Angela Merkel's Christian Democratic Union is attempting to hold on to coalition governments in three of the four laender holding elections. With Germany bogged down in domestic political campaigning, Merkel may be less able to focus on managing the eurozone crisis.