Why did Angela Merkel decide not to seek another term as CDU leader in 2018?

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In October 2018, Angela Merkel announced that she would not seek reelection as leader of the Christian Democratic Union (CDU) following a dismal performance by the party in regional elections in the state of Hesse.123

This decision followed a period of eroding support for Germany's traditional mainstream parties throughout 2018, which included a poor showing by the Christian Social Union (CSU) in Bavarian regional elections earlier that same month. At the time of her announcement, Merkel also declared her intention to step down as chancellor at the end of her term in 2021.123