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The 2001 election was an early election. In June 2001, the grand coalition under Mayor Eberhard Diepgen (CDU) broke down following a scandal involving CDU's leader in the Abgeordnetenhaus of Berlin, Klaus-Rüdiger Landowsky [de]. Landowsky, who served as the CEO of a public mortgage bank (later Landesbank Berlin Holding), had financed a risky deal between two men who were donors to the local CDU branch. The Berlin bank scandal [de] cost the city several billion euros. The SPD subsequently left the coalition, which had governed Berlin since 1990, and formed an interim minority government with the Greens supported by the PDS. Klaus Wowereit became Mayor after a constructive vote of no confidence against Diepgen on 15 June. The House of Deputies then voted to dissolve itself, triggering a new election.
The campaign was strongly influenced by the bad state of the public finances and the bank scandal. The CDU nominated 35-year-old Frank Steffel as their top candidate, and played on fears of potential PDS involvement in government. They also focused on security issues, especially after September 11 attacks.
The regional broadcaster Sender Freies Berlin accompanied the election campaign on its website with a "Wahltest" app, marking the first time in Germany that a Voting Advice Application was used.