Implications of the German elections for the economy and markets

Today's commentary
Summary: The German elections were a resounding victory for German chancellor Angela Merkel. Nevertheless, she must still broker an agreement for a coalition government and this will change the politics of Germany and Europe. Below are my thoughts on the implications for the economy and markets.
The election
Here is the situation in Germany. In terms of the ruling coalition, the CDU/CSU parties took 41.5% of the vote nationally, whereas the junior FDP partners only won 4.8% of the vote. As Germany has a 5% hurdle for parties to gain access to parliament, this puts the FDP out of the German Bundestag for the first time in the 64-year history of the Bundesrepublik. On the opposition side, The Social Democrats won 26% of the vote with the Greens taking 8.4% and the Left ...


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