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The 1998 German federal election was held on the 21st June 1998 to elect the 14th Bundestag, with the incumbent CDU/CSU government led by Chancellor Wolfgang Schäuble seeking a third term in office.
During his second term, Schäuble had made progress on the European single currency programme and on helping along the process of expanding the European Union. More controversially, his government had continued to seek to cut labour costs and taxes in the hope that expanding its austerity measures would aid in cutting public debt and reduce unemployment. However, unemployment continued to rise, which proved problematic for the government.
The CDU/CSU and FDP campaigned for re-election on the basis of Schäuble’s prominence in European politics, particularly stressing the leading role he had played in intervening in the Croatian and Bosnian Wars to try to bring peace to the region (which, with the onset of the Kosovo War the year of the election, proved resonant with voters).
The opposition SPD had nominated Minister-President of Lower Saxony Gerhard Schröder as their Chancellor candidate after he won a second majority in the state’s Landtag in 1998. Extremely popular in his home state, Schröder was initially favoured to give the SPD a very good chance of victory in the Bundestag election, but his campaign soon began to inadvertently disincentivise the party’s base as he adopted a centrist ‘third way’ ideology, akin to politicians like Tony Blair in the UK, rather than advocating another ‘plural left’ alliance with the KPD and Greens. In a surprise move, he announced he would be willing to negotiate with the FDP if it were numerically possible for the SPD to form a coalition with their support, a stance which had been unheard of since the two parties split in 1982.
While Schröder had hoped this big-tent stance would strengthen the SPD’s appeal, in actuality it made him appear alienating to the left and damaged his party’s chances. Ironically, the Greens under Joschka Fischer and the KPD of Lothar Bisky were open to the prospect of another ‘red-green -red’ coalition and Schröder did not disclaim this prospect, which enabled Schäuble and the CDU/CSU to paint Schröder as an unprincipled opportunist. Furthermore, the seeming ideological closeness of the two main parties is believed to have depressed turnout, which fell to just 77.5%, the lowest since before the Second World War.
The general antipathy to the campaign was reflected in the results, which saw little change from 1994 aside from the decline in turnout reducing the Bundestag’s membership; the CDU/CSU gained a few seats, the SPD lost a few (and notably the two main parties’ constituency gains cancelled each other out), and the Greens and KPD made minor gains, but fewer than they had hoped. The CDU/CSU-FDP coalition retained a small majority, and while Schröder did try to secure the support of the FDP and Greens for a ‘traffic light coalition’ which would have had a larger majority in the Bundestag than a renewed Schäuble cabinet, Schäuble was re-elected in the Bundestag’s Chancellor election, marking him the first Chancellor to win a third term since Ludwig Erhard in 1962.
The 600 seat Bundestag elected in 1998 remains the smallest elected since 1970.
(Again, sorry for the long delay between updates on this TL!)