The result was a deadlock, with the right-wing parties (CDU and FDP) being one seat short of majority and the left-wing parties (SPD and the Greens) two seats short, with SSW thus holding the balance of power.

After a failed attempt to invest a minority SPD–Green government supported by the South Schleswig Voters' Association (SSW), the SPD agreed to join a grand coalition with the Christian Democratic Union (CDU).

Surveys before the election indicated that most voters considered high unemployment in Germany and Schleswig-Holstein to be the key issue of the campaign.

Pre-election polls indicated that the personal popularity of Heide Simonis was still high, though, and that the SPD–Green coalition had the support of a plurality of voters.

Minister-President Simonis proceeded to form an SPD–Green coalition based on an agreement with the SSW backing it.