MNI: BOE CUTS BANK RATE 25BPS TO 4.75% AT NOV MEETING

MNI BRIEF: Record German Insolvencies As Debt, Costs Bite

MNI China Daily Summary: Thursday, Nov 11

MNI BRIEF: China FX Reserves Fell In Oct, Gold Purchase Paused

MNI BRIEF: China Oct Exports Grow, Imports Slide

CHINA OCT EXPORTS +12.7% Y/Y VS MEDIAN +5.0% Y/Y: CUSTOMS

MNI: EUROZONE SEP RETAIL SALES +0.5% M/M, +2.9% Y/Y

MNI: EUROZONE OCTOBER CONSTR PMI 43.0; SEP 42.1

MNI: GERMANY SEP INDUSTRIAL PROD -2.5% M/M (FCST -1.0%)

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

GERMANY: CDU's Merz Calls For Immediate Confidence Vote In Scholz Minority Gov't

GERMANY
Homepagemarkets-real-timePolitical Risk BulletCEEMEAEurozoneGermanyBulletGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets

Leader of the main opposition conservative Christian Democratic Union (CDU) Friedrich Merz has called for an immediate confidence vote in Chancellor Olaf Scholz's gov't following the collapse of the tripartite 'traffic light' coalition on 6 Nov. After the removal of Finance Minister Christian Lindner from office, and the withdrawal of Lindner's pro-business liberal Free Democrats (FDP) from the governing coalition, Scholz said that federal elections would be moved from September 2025 to March. However, Merz is demanding a confidence vote next week followed by an early election in January. 

  • On 7 Nov, Merz said “It is important that we now very quickly put responsibility for the composition of the German Bundestag back into the hands of the voters. That’s why I’m going to ask the chancellor in a conversation this afternoon to clear the way for this.”
  • Opinion polling shows the CDU and its partners, Bavaria's Christian Social Union (CSU), set to win a plurality of seats. Their most likely coalition partners would be Scholz's centre-left Social Democrats (SPD). However, based on current polls there is no guarantee these two would carry a majority. A 'Kenya coalition' (CDU, SPD, Green) would be possible but not ideal for Merz's party, risking leaning too far left.
  • The far-right Alternative for Germany (AfD) is on course for second place, but Merz has ruled out working with the party. The FDP would be the CDU's ideal coalition partner, but at present it is unclear if they will cross the 5% nationwide vote threshold.

Chart 1. Federal Election Opinion Polling, % and 6-Poll Moving Average

Keep reading...Show less
269 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Leader of the main opposition conservative Christian Democratic Union (CDU) Friedrich Merz has called for an immediate confidence vote in Chancellor Olaf Scholz's gov't following the collapse of the tripartite 'traffic light' coalition on 6 Nov. After the removal of Finance Minister Christian Lindner from office, and the withdrawal of Lindner's pro-business liberal Free Democrats (FDP) from the governing coalition, Scholz said that federal elections would be moved from September 2025 to March. However, Merz is demanding a confidence vote next week followed by an early election in January. 

  • On 7 Nov, Merz said “It is important that we now very quickly put responsibility for the composition of the German Bundestag back into the hands of the voters. That’s why I’m going to ask the chancellor in a conversation this afternoon to clear the way for this.”
  • Opinion polling shows the CDU and its partners, Bavaria's Christian Social Union (CSU), set to win a plurality of seats. Their most likely coalition partners would be Scholz's centre-left Social Democrats (SPD). However, based on current polls there is no guarantee these two would carry a majority. A 'Kenya coalition' (CDU, SPD, Green) would be possible but not ideal for Merz's party, risking leaning too far left.
  • The far-right Alternative for Germany (AfD) is on course for second place, but Merz has ruled out working with the party. The FDP would be the CDU's ideal coalition partner, but at present it is unclear if they will cross the 5% nationwide vote threshold.

Chart 1. Federal Election Opinion Polling, % and 6-Poll Moving Average

Keep reading...Show less