A victory for the SPD in the German federal elections would pave the way for more public investment and reduce the influence of the “frugal” on the European scene. What to support the growth prospects and therefore the actions of the euro zone, even if a coalition anchored on the left were to raise taxes.
After sixteen years, the Merkel era is coming to an end in Germany. A few days before the federal elections this weekend, the outcome remains undecided, but according to the polls, the socialists of the SPD are on course to take the head of a new coalition in Berlin.
The possible arrival of the socialist Olaf Scholz, the current Minister of Finance, in the chancellery does not really worry the markets. The yield on the German Bund has thus remained anchored in negative territory in recent months, at -0.33% at 10 years on Wednesday. On the stock market, the German DAX has certainly given up ballast in recent days in the face of soaring Chinese risk, but it has still posted a performance above the CAC 40 since the start of the crisis.