Last weekend, the national election season in Germany got an early start.  The battle for the Bundestag and the office of Chancellor in September of 2013 is just now getting underway following the nomination of Peer Steinbrück as the candidate of the SPD to run against incumbent Angela Merkel.

The decision to nominate Steinbrück by the leadership of the Social Democrats was somewhat surprising, as most were expecting the decision to come early next year.  Steinbrück’s nomination was not the result of a long primary run a la the American marathon. Germans don’t have that option − they may be thankful for this fact as well. It happened behind the doors of the party’s leaders, who decided to submit their nomination of Steinbrück to the SPD Executive Board for approval. That may not make everyone in the SPD happy, but that is the way it is done.

But for exactly that reason, during the next eleven months Steinbrück will need to mobilize his own party behind him − not necessarily an easy walk − and to lay the foundation for what he sees as victory next year: the formation of another coalition with the Greens under his leadership as the next Chancellor. To get there, Steinbrueck has to convince some of his Social Democratic party friends that he is not too far to the right of their views on the party platform, a feeling that some share after his four year partnership with Angela Merkel when he was Finance Minister.

Steinbrück appears to be a strong candidate for the SPD. His colleague Franz-Walter Steinmeier, who ran unsuccessfully against Merkel in 2009 only to wind up in a coalition with her and serve as Vice-Chancellor and Foreign Minister, was not going to try again. And even though Steinbrück was in Merkel’s cabinet, working easily with her in the midst of the economic storm in ‘08 and ‘09, he has been a key source of criticism leveled at the current coalition. Furthermore, he knows his way around the financial policy issues which are certain to drive the campaign battles next year.

Merkel may not be too concerned about next year − for now. She enjoys a high level of personal popularity and has managed to secure the perception among voters that she is protecting their interests. The weaker coalition partner − the FDP − has only underscored that image. She can also point to the fact that she has defeated two SPD challengers in a row, namely Gerhard Schröder in 2005 and Steinmeier in 2009 (although her victory over Schröder was incredibly narrow). She does have options to consider in forming a coalition next year – and remaining Chancellor for a third term – either with the FDP once more, the SPD, or maybe even with the Greens. Her flexibility in governing over the last seven years only testifies to her ability to evaluate coalition options. Remember: She is the only Chancellor to govern in two different coalitions.

Steinbrück’s strategy will be shaped by the economic environment next year and predicting that is a guess, not a guarantee. If there is a recession in the spring of next year, it could make the Chancellor vulnerable. Given the fact that Germans seem to like Merkel’s ability to forge positions which convey consensus, Steinbrück will need to decipher how best to plan his attack. Merkel has managed to create a situation within her own party that makes her appear to be without rivals, and it furthermore sells her policy position as the best of all other alternatives. She has been successful in steering most of her goals through the Bundestag.