A vote for change

The next German government is likely to be a coalition of the SPD, the Greens and the Liberals. The FDP and the Greens will be the kingmakers. The government will be greener, more pro-European integrationist and spend more on investment. But changes are likely to be gradual with the FDP in control of the Finance Ministry. The markets won’t be worried by this. And at least the changes will be in the right direction. Ideas like the EU becoming more autonomous militarily and less transatlanticist are not going to happen. The outcome is neutral for Bunds and the euro and positive for European equities.

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