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Barclays on German politics

GERMANY

Barclays says its "takeaways from past month's events and their implications for the political situation are the following:"

  • "A Union/Green coalition may struggle to reach the majority threshold and a three- party coalition appears increasingly likely, the SPD may recover from historical lows, and the FDP could be a king-maker."
  • "Consequently, coalition discussions may be protracted and compromises will be difficult to find, increasing the risk that the next government will not be able to make important changes to policies and increase much-needed public investments."
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