Germany: prepare for an exciting election
18 April 2017
In a few months, Germans go to the polls for crucial elections. ING’s Frankfurt-based Chief Economist Carsten Brzeski looks at what that could mean for Germany’s economy and for Europe.
In just over five months, people in Germany will go to the polls. As in most elections, the economy is set to become a main focus point. While Angela Merkel’s conservative Christian Democratic Union party is likely to emphasise the country’s strong economic fundamentals, the centre-left SPD, and front-runner, Martin Schulz, will likely criticise shortcomings in the current growth performance. To many, this campaign will sound like two tales of one economy.
In this report, our Frankfurt-based Chief Economist, Carsten Brzeski, looks at just what’s at stake. While the German national elections are not likely to deliver a populist surprise, a new government and a new chancellor is clearly a possibility. We think that chance has yet to be factored in by the markets.
Carsten looks at the strengths of the German economy, but also its weaknesses. He suggests that the labour market is in need of reform and that investment in the education system and modern infrastructure should also be top priorities for politicians. He also looks at what the election outcome could mean for the future of the Eurozone.