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 ...

As this site is now reader-supported via Patreon, the remainder of this article is only available to subscribers at a specific patronage level. Articles at patronage levels BRONZE, SILVER, and GOLD are denoted by the categories in blue capital letters above the post. Posts categorized DAILY are available to both SILVER and GOLD patrons.

Click here to join. Your readership is greatly appreciated!

Registered users can log in by entering details here or below.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More