BMI Country Risk & Industry Analysis’ Post

The CDU is expected to win Germany's snap elections on February 23, likely forming a coalition with the SPD. However, differing economic policies between the CDU/CSU and SPD could lead to policy gridlock, making it difficult to address Germany's economic challenges. While immediate market impacts are expected to be limited, the potential for significant economic reform remains uncertain, with ongoing political and social tensions in the background. Key View • We expect the opposition Christian Democratic Union (CDU) to retake the Chancellorship in snap elections taking place on February 23. • The CDU holds a strong lead in polls, and we believe that the most likely partnership to achieve a majority in the Bundestag will be with the Social Democratic Party (SPD). • While political risks are likely to be muted, we believe that the new government will face difficult decisions and compromises in order to find solutions to kick-start feeble German economic growth. Read the full article here: https://ow.ly/se6X50UMSAi #ConnectedThinking #Germany #Elections

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