Merkel denies damage after election loss

It's safe to say that October 15 won't make Angela Merkel's list of favorite days. Having led by as many as 10 percentage points in polls not that long ago, the chancellor's conservative CDU party finished second-best to the Social Democrats in Lower Saxony's regional election, causing critics to ponder whether Merkel's fortunes were on the wane.

A headline in Germany's Bild newspaper termed the chancellor "seriously damaged" – an impression she sought to refute on Monday as she heads into negotiations for a broad three-party coalition to form the next government.

"I – or we as the CDU, as conservatives – are going into these discussions secure in the knowledge that we're the strongest party," Merkel told reporters at party headquarters in Berlin. "I don't see the result of the Lower Saxony vote as weakening us as we tackle this task."

It was perhaps a telling near-slip of the tongue. Despite winning Germany's national election last month, the result was the CDU's worst ever in terms of percentage, which has led some critics to speculate that Merkel's moderation may be costing the party right-wing votes.

Austria's simultaneous national lurch to the right after a victory by a self-branded new style of conservative, Sebastian Kurz, was also interpreted as an implicit criticism of the centrist Merkel and her welcoming stance on migrants. Both Kurz's conservatives and the right-wing populist FPÖ performed strongly.

"The success of Kurz and the FPÖ can be interpreted as the opposite of Merkel's position, as a rejection of the culture of welcoming migrants," political science professor Eckhard Jesse told DW.

Merkel dismissed the idea that Kurz had gotten something right that she had gotten wrong.

"Our margin of victory over the second strongest party was a lot larger," Merkel said, adding that Germany's far-right populist party, the AfD, had achieved far more "modest" results then the FPÖ.

Refugees a 'matter of rhetoric'

Still, Merkel did seem a bit disgruntled. The longtime chancellor was no doubt hoping for a bit more momentum as she attempts to build Germany's first ever "Jamaica" coalition with the free-market FDP and the more left-wing Greens. Another question heading into Wednesday's first talks was where the CDU would position itself in that triangle.

There has been speculation that after conservatives won less than 33 percent of the vote in the Bundestag election on September 24, Merkel would have no choice but to reposition her party further to the right. As if to refute that notion, the chancellor appeared in front of a backdrop with the slogan "Die Mitte," or "the center."

She also said that the policy differences, particularly on the issue of migrants, between her conservatives and Kurz's party in Austria had been overestimated.

"As far as differences in refugee policy are concerned, I've talked with Mr. Kurz a number of times, and they're not all that clear," Merkel said. "I think there's not much disagreement about fighting the root causes and the need to conclude an agreement with Turkey. It's more a matter of rhetoric."

While Merkel would lose credibility with a dramatic shift to the right, experts say that the chancellor, who has promised there will be no repeat of the mass migration to Germany of 2015, has already tacitly begun modulating her positions.

"In practice, she's already moved, but she's not going to make a big deal of it in the form of statements," Jesse explained.

Still, it's going to be a tricky balancing act to mediate between the FDP's calls for more restrictive policies on migrants with the Green's more welcoming position – all the while trying to ensure that the wishes of her own party are met.

An orderly transition to a post-Merkel era?

Merkel stressed that she was not going into coalition talks with any preconceived notions, saying that the CDU would not be presenting any "lines in the sand." When asked which topics the CDU would be pushing, she named pensions and the needs of rural people. Otherwise, she tended to stick to issues on which there is broad consensus, like the need for more digitalization and affordable places to live in Germany, while largely avoiding the migrant topic.

That may be interpreted as weakness, although Jesse cautioned against reading too much into one bad day for the chancellor.

"The election in Lower Saxony was very much one of local issues," he explained. "The Jamaica coalition is not endangered. It's nonsense to act as though Merkel's position in the coalition negotiations has been weakened."

But Jesse also thinks that Merkel's next moves will be conditioned by the idea that she may not want to serve out another full four year term as chancellor.

"The question is how long she wants to do this," Jesse said. "I think she'll hand over power some time in the next legislative period. She'll make a surprise announcement, and the next man or woman will have a chance to show what he or she can do. I believe she'll be the first chancellor to successfully manage a transition."