A federal election was held in Germany on 27 September 1998 to elect the members of the 14th Bundestag. The Social Democratic Party (SPD) emerged as the largest faction in parliament for the first time since 1972, with its leader Gerhard Schröder becoming chancellor. The Christian Democrats had their worst election result since 1949.

Issues and campaign

Since German reunification on 3 October 1990, the unemployment rate in Germany had risen from 4.2% to 9.4% in 1998, with the Federal Labor Office registering more than 4 million unemployed. The unified Germany had to fight economic and domestic difficulties even as it actively participated in the project of European integration. Most people blamed the centre-right coalition government of the Christian Democratic Union/Christian Social Union (CDU/CSU) and the Free Democratic Party (FDP) for the economic difficulties. Longtime Chancellor Helmut Kohl's government was regarded by many as not having fully implemented the unification after eight years, in view of the mass protests in many eastern German towns due to job losses and social welfare cuts.

The 1998 campaign began with both the CDU and SPD working out who would lead their parties. There had been rumours that Kohl would resign and allow Wolfgang Schäuble to take the reins of the CDU, but these rumours were rendered obsolete when Kohl announced in April 1997 that he would seek the chancellorship for a sixth term. The two contenders for the SPD nomination were Oskar Lafontaine, the party's chairman, and Gerhard Schröder, Minister-President of Lower Saxony.

On 1 March 1998, Schröder led the SPD to a huge victory in the Lower Saxony state election, gaining an unusual absolute majority for the second time and effectively receiving the SPD nomination for federal chancellor. Schröder had announced he would withdraw his bid for the nomination if he received below 42 percent of the popular vote. In the 1998 general elections, Schröder received 47.9 percent. Following this election, Lafontaine withdrew his bid and Schröder was inaugurated in the May 1998 convention. For the SPD, Schröder offered a new face for the party. He gave the party a new vigor, one that was lacking in the CDU after Kohl proclaimed his nomination. Many in the CDU questioned if Kohl had made the right choice for the party.

The CDU campaign was based on the experience and reputation of Kohl. One of the CDU's main slogans was 'Safety, not Risks.' "Kohl exploited his familiarity and experience, as well as his status as Europe's longest serving head of government." The SPD avoided direct attacks at Kohl, but rather focused on their message of a "new center".