Germany’s Desperation

Forex News

As we already know, Angela Merkel didn’t manage to create a coalition with Free Democratic Party and Greens. And now, there might be a new election, or a Grand coalition, which would consist of CDU/CSU+SPD, or renewed Jamaica talks (CDU/CSU + FDP+ Greens) or minority government (CDU/CSU + Greens or FDP). All the options aren’t easy to be achieved.

As of new election, its outcome would suggest two variants: Grand Coalition or Jamaican Coalition. Concerning Grand Coalition, SPD Leader refuses unite with Merkel, but doesn’t completely exclude such an opportunity. As of Jamaica talks, they ended with FDP’s leave. German President Frank-Walter Steinmeier (SPD member and the former foreign minister) insists on negotiations between leaders of the parties. The President is going to meet the Greens and FDP, parties, that have drastically different views, which is why this option is unlikely. In case of minority government, Merkel might choose among Greens or FDP. But, the Chancellor does not consider this idea.

As we may judge, the situation is very complex and ambiguous. We will be closely monitoring all the development and wait for final decision.