What Coalitions Could Merkel Explore?

Angela Merkel’s poll lead in Germany’s election campaign is so wide that interviewers already are asking her to preview the next government. While the chancellor persistently avoids the question, the range of possible ruling coalitions after the Sept. 24 vote is likely to be the broadest yet.With Merkel’s Christian Democratic Union-led bloc ahead and Martin Schulz’s Social Democrats polling second, the wide-open race for third place is “the most exciting feature” and could have a key influence on German policy toward Europe, ING-Diba economist Carsten Brzeski said in a note.“All potential coalitions have their pitfalls and would be more difficult to push through than before,” partly because two of the three possible partners are already “traumatized” by serving in Merkel-led governments, said Oskar Niedermayer, a political scientist at Berlin’s Free University, who has researched German parties since the 1970s. Here’s a look at the main scenarios if Merkel wins a mandate for a fourth term:

Source: Merkel Faces Volatile Coalition Options If Election Goes Her Way – Bloomberg

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Craig Erlam

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam