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MNI POLITICAL RISK ANALYSIS – German Election Analyst Views

Germany set for a 'grand coalition', focus turns to possible GroKo policies & whether debt brake reform is possible
CEEMEAEurozoneGermanyStoryPolitical Risk

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The German federal election on 23 February delivered an outcome that was widely expected, insofar as the conservative Christian Democratic Union (CDU) and centre-left Social Democrats (SPD) have emerged in a position to form a majority coalition, but also presents notable uncertainty. This largely centres on whether reforms to the constitutional debt brake will be possible given the ‘blocking minority’ held by the far-right Alternative for Germany (AfD) and far-left Die Linke (The Left). Below we have selected key views and comments from various sell-side analysts covering the election and its implications for German politics and economic policy-making over the coming weeks and months. 

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The German federal election on 23 February delivered an outcome that was widely expected, insofar as the conservative Christian Democratic Union (CDU) and centre-left Social Democrats (SPD) have emerged in a position to form a majority coalition, but also presents notable uncertainty. This largely centres on whether reforms to the constitutional debt brake will be possible given the ‘blocking minority’ held by the far-right Alternative for Germany (AfD) and far-left Die Linke (The Left). Below we have selected key views and comments from various sell-side analysts covering the election and its implications for German politics and economic policy-making over the coming weeks and months.