But he believed that new elections are an unlikely prospect for several reasons. “Against the will of the reigning chancellor, it is almost impossible to call early federal elections in Germany,” he said.
“(Merkel) could stay on as chancellor until parliament elects a successor supported by a majority in parliament. That the other parties ranging from the ultra-right AfD to the Left Party would agree on a successor to Merkel and outvote a CDU-SPD coalition seems virtually impossible,” he said.
A new election would not be welcomed by Germans or financial markets given the fact that it took Germany around six months to form a government after its last election in September. A German business representative told CNBC that the spat was an unwanted distraction from other matters facing Germany - like the prospect of trade tariffs with the U.S.
“The situation that has developed over the weekend is serious, so serious that we haven’t seen this is decades, it’s a serious fight over how to handle migration in Germany, but also on a European level,” Joachim Lang, the director general of the Federation of German Industry, told CNBC Monday.
“This is really time consuming and it really is necessary to decide these issues when there are more issues to discuss and take care of,” he added.