Graham Bishop.com

The 24th Oct coalition agreement between the conservatives and the Free Democrats marked the beginning for the new German government and the second term for chancellor Angela Merkel.
Fighting the financial and economic crisis remains a key priority. Fiscal stimulus in 2010 will be slightly enhanced, with a shift from spending-related stimulus to tax cuts.
Other features in economic policy will be cautious pro business reforms and health care reform. FDP ambitions for a major overhaul of the health care funds will face strong opposition from the conservative CSU.
Merkel’s choice of finance minister, Wolfgang Schäuble, was as much a surprise as the promotion of Philip Rösler to health minister. The appointment of Schäuble, a CDU political heavyweight, confirms Merkel’s focus on fiscal policy.

Asset conclusions: agreement positive for German assets, notably stocks and the euro.

Please see attached 5 page analysis from Michael Clauss as a pdf to read onscreen or simply print.

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

Discussion Partners

John Arrowsmith: ECB / Regulatory

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