Change is good

The CDU/CSU will lose the next election. So after 16 years of rule Germany will finally get a new government. There will be a coalition government including the SPD and the Greens and most probably the FDP. This would be positive for both the German and Eurozone economies and for future European integration. It would be a plus for most German and European financial assets. That optimism would be tempered if Die Linke has any economically critical role in the next administration. But we doubt it. The only casualty would be Bunds, as government deficits and spending would be higher. But then that is not different to most other countries — starting with the US.

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