EZA 915 Report: Germany, Election Flash - light breeze of change

01 October 2009

• The German federal elections confirmed chancellor Angela Merkel in office, but the real winner was the liberal FDP, lead by Guido Westerwelle.
• They will replace the Social Democrats (SPD), who suffered a heavy defeat, as partner in a new centre-right coalition.
• The distinctly pro business FDP is likely to sway the new government towards an agenda of economic reforms – notably on taxes, labour and health – which the CDU had abandoned in the outgoing grand coalition government.

 

Asset conclusions: generally positive for German equities and the euro, slightly negative for German bonds and marginally negative for euro area government bonds.

 

Please see attached the more detailed 5 page report from Michael Clauss in the attached pdf.

 

Dr Michael Clauss: Germany Politics / Economy / Equities Sectoral Analysis
Tel: +49 89 64254046

michael.clauss@eurozoneadvisors.com 

 

 Discussion Partners

 

John Arrowsmith: ECB / Regulatory

Tel: +44 7720 59 1726

john.arrowsmith@eurozoneadvisors.com

 

 

 

 

Dr Michael Clauss: Germany Politics / Economy / Equities Sectoral Analysis
Tel: +49 89 64254046

michael.clauss@eurozoneadvisors.com

 

 

 

 

Jacques Lafitte: France Politics / Brussels
Tel: +32 473 934 664

 

 

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