Various news sources have extensive coverage of the outcome of Germany's Federal election.

This is a summary, in very brief:

  • CDU/CSU secures 28.7% of votes, with far-right AfD at 19.8%, per ZDF projection.
  • Markets await coalition formation to gauge fiscal reform prospects.
  • Market-friendly coalitions possible, including CDU-SPD-Greens.
  • AfD's weaker-than-expected result.
  • Key focus on Germany’s "debt brake", blamed for economic stagnation.
  • Limited scope for reform seen, but rising defence spending pressures expectations.
  • Election result impacts European defence funding outlook.
  • Debt brake reform could boost euro and eurozone stocks.
  • FDP’s uncertain parliamentary entry may affect coalition talks.
  • Outcome determines whether CDU-SPD coalition suffices or Greens/FDP needed.
  • Coalition negotiations could delay reforms and add market uncertainty.

EUR/USD is up a little on the result, hopes up for better economic prospects.

eurusd monday early 24 February 2025 2
Source: Forex Live