Despite remaining Germany’s largest party, the CDU had its worst showing since 1949, losing votes to anti-immigration party Alternative for Germany (AfD) in light of her controversial open-door migration policy.
The disappointing result is set to have a knock-on effect on her party’s finances too as proportional representation extends beyond Germany’s parliament, Der Spiegel reports.
German political parties are financed by the government, with the money divvied out according to results in the most recent local and national elections, and according to party donations.
And due to her poor showing in the recent election, the Chancellor can now expect a much smaller share of the €160 million annual pot after being left struggling to form a coalition.
The CDU was 1.6 million votes behind its previous total and states to receive €1.7 million less in 2018.

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Its Bavarian sister party, the CSU, also stands to lose revenue.
It is also bad news for the SPD, led by former EU Parliament chief Martin Schulz, which is licking its wounds after its vote totally collapsed.
It can expect to lose at least €1.7 million based on its vote share alone, after losing about 2 million voters.
However while this is bad news for Mrs Merkel and her rivals in the Socialist Party, who also had an exceptionally poor result, it is good news for fringe parties.
AfD entered the national parliament for the first time in September’s elections, and can expect a huge boost to its finances as a result.
It could gain up to €4million in additional claims from the state after winning over 13 percent of the vote.