Germany
German politics: state elections confirm status quo but endorse gradual reform The 26 Mar state elections in three German states endorsed local governments, preserving the status quo balance within the current grand coalition. The liberal FDP opposition party, despite a rise in voter support, will see its position in local governments weakened, and thus its influence in the Bundesrat. The results imply growing capacity for reforms for the grand coalition government – notably regarding the federal constitution, labour market and health care.
SummaryAsset conclusions: positive for stocks and bonds; political stability and CDU prevalence in the Laender improves political background for economic reforms during the coming two years.
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© Graham Bishop
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