But what is Germany’s incoming chancellor stepping into?
Even though outcome is still far from clear
Much of what happens with the German economy depends on Sunday’s elections, with the leading candidates neck-and-neck
Whoever succeeds Merkel as chancellor will have to hit the ground running as covid cases are, once again, on the rise
Many fund managers dismissed the historical German election results as “insignificant for markets”. But they fail to take into account the fact that these elections have upended the status quo, possibly triggering a reversal of recent political trends.
You may be forgiven for not staying up late this Sunday to watch the final results of Germany’s parliamentary elections come in. While Chancellor Merkel is sure to win, the scale of her victory is likely to impact the future direction of bond spreads.