Merkel's exit from power will lead to 'period of reflection' for Germany

Coalition looks likely

Elliot Gulliver-Needham
clock • 3 min read
SDP’s Olaf Scholz is predicted to lead a coalition government
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SDP’s Olaf Scholz is predicted to lead a coalition government

German Chancellor Angela Merkel’s departure from office heightens political uncertainty for the country, but fund managers believe, on balance, it may play to the favour of the powerhouse economy.

Merkel has been Chancellor of Germany for over 15 years across four terms, seeing off four American presidents, five British prime ministers and eight Italian prime ministers. Markets do not tend to like uncertainty, but in this instance, the election could end up supporting the economy in the long term.  After what looked like a tight race between the Greens and the ruling centre-right CDU/CSU, the Social Democratic Party (SDP) has pulled ahead in the polls, putting the possibility of a three-way coalition in play for the first time in German history, either with the liberal Free Dem...

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