How did investors react to the results? According to the Polish daily Rzeczpospolita, the euro reached its strongest level in a month against the dollar, while Frankfurt's stock exchange opened on a positive note.
Germany's benchmark stock index, the DAX, rose 0.7% at the start of Monday's session.
Meanwhile, France’s CAC 40 fell by 0.3%, Italy’s FTSE MIB gained 0.5%, and Poland’s WIG 20 dropped 1%. The euro strengthened to nearly a one-month high against the dollar, reaching $1.052 per euro on Monday morning.
Election results: A shift in German politics
The center-right CDU/CSU bloc emerged as the winner of Sunday’s elections, securing 28.5% of the vote and 208 parliamentary seats. Party leader Friedrich Merz is now the frontrunner to become Germany’s next chancellor - provided he can form a coalition government.
The far-right Alternative for Germany (AfD) came in second with 20.8% of the vote and 152 seats, but the CDU/CSU has stated it will not form a coalition with them.
Chancellor Olaf Scholz’s center-left SPD suffered its worst postwar election result, finishing third with 16.4% of the vote and 120 seats. The Green Party won 11.6% (85 seats), while the far-left Die Linke took 8.8% (64 seats).
The liberal FDP failed to pass the threshold to enter parliament, receiving only 4.3% of the vote.
The most likely outcome is a CDU/CSU coalition with the defeated SPD, but the final government formation remains uncertain.
Friedrich Merz announced that his first foreign trip will include both France and Poland - visiting Paris and Warsaw on the same day to emphasize the importance of Germany’s relations with both countries.
Source: Rzeczpospolita/rp.pl/PAP/X/@Germany_Kolkata
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