New polls show Angela Merkel losing her Chancellorship

A series of new polls have triggered a panic in the German bond market as the country’s credit default swap (CDS) spiked to the highest level since the Brexit. However, by global standards, German CDS are quite low, below 50 basis points.

Last week, Bloomberg reported a jump in the support for Social Democrats (SPD) by 8 points to 28 percent compared to a month earlier, while the support for Angela Merkel’s Christian Democratic Union (CDU) declined by 3 points to 34 percent, a multi-year low. The sudden increase in SPD’s popularity was triggered after the newcomer Martin Shultz introduced his candidacy to become the chancellor. Mr. Schultz was the head of the European Parliament before he introduced his bid. SPD head Sigmar Gabriel stepped aside due to his lower popularity.

Now, a brand new poll last night conducted by INSA showed a further increase in support for SPD by 3 points to 31 percent, while Merkel’s CDU’s popularity declined by 4 points to 30 percent. It is becoming increasingly likely that she is going to lose her bid to chancellorship as the Germans who couldn’t support either her or the Anti-immigrant AfD Party are leaning towards Mr. Schultz.