“What’s the story? The preliminary results from Sunday’s federal elections in Germany are broadly in line with polls, showing the conservatives winning the election and becoming the largest party bloc in the newly elected parliament. A strong focus on the themes of inflation and immigration helped the far right party AfD score well with voters and secure second place behind the CDU/CSU. At the same time, the center right CDU/CSU has explicitly ruled out a coalition with the AfD, making its participation in government highly unlikely. With the center left SPD winning 152 seats, far more than the Greens, a coalition government between the CDU/CSU and SPD seems likely, as they have enough seats for a narrow majority in the new parliament. We breakdown our four key takeaways on what this could mean for the economy.”
Morten W. Langer
