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.
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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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.