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24 Feb 2025

Euro Rises As Moderates Win German Election

The euro is trading with a supportive bias after a centre-right party emerged victorious in Germany’s federal election, avoiding a lurch into extremist territory and paving the way for business-friendly economic reforms. The Christian Democrats led by Friedrich Merz are believed to have won 28.5 percent of the vote against the far-right Alternative for Germany’s 20.8 percent, 16.4 percent for the centre-left Social Democrats, 11.6 percent for the Greens, and 8.8 percent for The Left. The government could find it difficult to enact broad-reaching defence and fiscal policy changes—given that parties on the extreme left and right have enough votes...

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