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The 2017 German federal election delivered dramatic electoral decline of the two traditional main parties, the Christian Democrats (CDU/CSU) and the Social Democratic Party (SPD), who had governed Germany in a 'grand coalition' government since 2013. The main reason for this outcome was the decision by Chancellor Angela Merkel to open Germany's borders for refugees and migrants, an unprecedented policy that abandoned border controls and remained in place between September 2015 and March 2016. This article focuses on how the refugee and migration problem subsequently turned into a wedge issue, splitting most Ger-man political parties and handing a major election victory to the main critics of Merkel's decision , namely the rightist Alternative for Germany (AfD) and the right-wing liberals of the Free Democratic Party (FDP). Rather than explaining these developments in isolation, the article highlights how past welfare state retrenchment and fear over future economic prosperity make significant groups of the electorate, including former supporters of left-of-centre parties, lose confidence in the ability of the political system to deliver stability and social integration.

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