In a recent discussion on the “German Election Results: Shaping Europe's Future?” insights were shared by Anna Rosenberg, Head of Geopolitics at Amundi Investment Institute; Thomas Kruse, CIO Amundi Germany; and esteemed guest, Günther H. Oettinger, Former European Commissioner and Member of the Supervisory Board at Amundi Germany.
Our experts conducted an in-depth analysis of the political shifts, economic outlook, and investor expectations for the coming months as Germany embarks on a new political era.
Key takeaways
Germany's February 23rd elections saw a record-breaking turnout, the highest since unification in 1990.
The centre-right CDU/CSU won with 28.6% of the votes, positioning CDU leader Friedrich Merz to be the next Chancellor. His first task is to form a coalition government.
Negotiations with the Social Democrats, who came third with 16.4% of the vote, will focus on fiscal reform and domestic policies.
A change in fiscal stance, with more defence spending, is likely but may not lead to a major stimulus.
Reforming Germany’s debt brake or creating a special fund will take time due to a blocking minority, making it unlikely to affect growth before 2026.
In case you missed the live discussion, or if you simply want to revisit the content, a playback of the webinar is now available along with our recently published Investment Talks paper, providing further insight into potential market and policy implications.
