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Markets relieved by German election result, but key industries remain mired in uncertainty

25 February 2025
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Markets relieved by German election result, but key industries remain mired in uncertainty
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Germany’s election result brought optimism to markets, with Frankfurt’s DAX index rising 0.6% while the euro strengthened. The conservative alliance of CDU-CSU emerged victorious, likely leading to Friedrich Merz becoming the next chancellor. However, uncertainty remains as coalition talks loom and smaller parties’ support will be crucial for implementing promised policies like reforming Germany’s “debt brake” rule.

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