Merkel will not seek re-election as CDU party leader

German Chancellor Angela Merkel has told the Christian Democratic Union of Germany (CDU) that she will not be running for re-election as it’s chairwoman in December according to sources on Monday.

As the news broke, the Euro fell to session lows.

Merkel has been chairwoman of the CDU since 2000 and her stepping down from the role would start a race for her successor within the party. However German news agency DPA claims that Merkel would like to remain chancellor.

Mekrel reportedly told CDU party leaders that she will step aside from the leadership election bid after the center-right party and the center-left SPD both took a hit in ballots in Hesse state at the weekend.   

If Merkel was to step down, it would allow a new CDU chairperson to build a profile before the next national election, in 2021.

Currently Merkel's contender is CDU party secretary general Annegret Kramp-Karrenbauer.

The weakness that Merkel faces on the home front, could limit her capacity to lead in the European Union, as the block currently is dealing with Brexit, a budget crisis in Italy, and possibility of populist parties gain popularity at European parliament elections in May.