The German Elections' Impact on the Eurozone

Germany heads to the polls next week in a high stakes general election that will almost assuredly see Chancellor Angela Merkel retain her post for a fourth consecutive term. The more interesting question is which party will join her conservative Christian Democrats in a coalition government, and how this partnership will influence the Eurozone in coming years. The polls are clear: Angela Merkel will continue to run Europe’s largest economy after the September 24 election, but doing so will require another elaborate partnership in the Bundestag. Merkel’s CDU/CSU will likely have to choose between the market-friendly Free Democrats, the Greens or both. Combined, they are projected to face Social Democratic (SDP) opposition as well as other parties representing a diverse array of viewpoints and agendas. Another possibility is maintaining the current grand coalition framework – an alliance that includes the CDU/CSU and the SDP.