Earlier posts are here, its a cliffhanger:
- The German election result is line ball
- Tight German election results point to a long night but SPD leads
Conveying this from a note via ING, bolding is mine for emphasis but read the whole paragraph:
- The current result also means that there will now be long coalition talks. Germany doesn't have a prefab mechanism for these coalition talks and the strongest party does not have an automatic right to lead the next government. In fact, all parties can have exploratory talks in whichever combination they want until they have found a constellation which would have a parliamentarian majority. In the past, there were actually two national elections after which the largest party did not lead the government coalition. With the current results, three coalitions would be possible: a SPD, Greens and FDP coalition, a CDU, Greens and FDP coalition, or another revival of the grand coalition but then under the leadership of the SPD. The option of a left wing coalition of SPD, Greens and Left Party is no longer possible.
That last sentence likely means less probability of a much higher taxing government. EUR is little changed so far here in early Asia hours: