The German election resulted in a huge vote of confidence for Angela Merkel and CDU and CSU who together appear to have got 41,5 percent of all votes.
- All in all, this means continuity and stability for the financial markets. We expect the Social Democrats, SPD, to enter a Grand Coalition with Merkel after a few weeks of tough negotiations where tax policy will be a major issue, says Holger Sandte, Chief Euro Analyst at Nordea.
At the same time as CDU and CSU increase a lot since last election, the liberal party and former coalition partner to Merkel, FDP, drop sharply and is forced to leave the parliament. The euro-skeptic party AfD did well in the election but didn’t get a parliament seat.
- Germans again voted overwhelmingly pro-euro and when it comes to the euro-crisis management, the German approach will probably remain cautious and pragmatic if needed, says Holger Sandte.
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