Angela Merkel signalled the end of a political era on Monday when she announced she will give up the leadership of her political party next month and stand down as German chancellor when her current term expires in 2021.

The woman who has dominated European politics for 13 years stunned Germany with the announcement in the wake of historic losses for her Christian Democrat party (CDU) in regional elections at the weekend.

“I am convinced it’s time to begin a new chapter,” Mrs Merkel told a press conference in Berlin. “I once said I was not born chancellor. And I have never forgotten that.”

The veteran leader said she wants to complete her current term as chancellor but will seek no future political office, either in Germany or at the European Union, where she has been talked of as a future commission president.

She said she would step down as CDU leader at the party conference in December, paving the way for a successor to lead the party into Germany’s next elections.