Euro plunged on news about Merkel to resign

The exchange rate of the single European currency slid on the news that German Chancellor Angela Merkel is going to resign as the head of the party “Christian Democratic Union”, being in charge since 2000.

Angela Merkel
Source: The National

Euro-dollar declined from 1.1410 to 1.1359 dollars per one euro right after Bloomberg, Reuters, DPA and BBC News reported that Merkel will resign from the CDU position until the end of this year.

Her decision is related to the CDU’s fiasco in the latest elections to Landtag of the Federal State of Hesse which took place last Sunday.

Although according to the preliminary results, CDU won those elections, getting 27.2% of the votes, the result appeared to be worse by a third than five years ago when Merkel-led party obtained 38.3%.

Merkel reported that she is ready to resign on Monday during the meeting of the party praesidium in Berlin. Merkel is not going to take part in the head of the party elections which will start in December. At the same time, she wants to remain in Chancellor position.

The ruling coalition in Germany is at risk to lose the majority in Landtag, needed to form the government, due to the CDU losses in Hesse, Deutsche Welle reported.

In that case, the Hasse State government will have a different structure, and it is extremely important for the German government’s fate.
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