The euro will be strengthened after the German elections

In Germany The DAX stock index on the Frankfurt Stock Exchange was almost 1 % on Monday after noon, when the results of Sunday’s federation elections were melted on the market.

The share of a large German weapon manufacturer Rheinmetall had strengthened more than 3 %.

Ascent the background may be the German Chancellor of Chancellor Friedrich Merzin Comments on supporting Ukraine and that Europe needs to be quickly confirmed so that it can become “independent” from the United States.

In the currency market, the euro was slightly rising to the dollar. One euro got just under $ 1.05.

German The new government is likely to be the Christian Democrats (CDU and Bavarian CSU) and the Social Democrats. Danske Bank by This is a positive result for the German economy.

The less likely option is that the Greens will also join the new government.

German There may be changes in the debt brake recorded in the Constitution, which would provide more room for investment.

The debt brake restricts the annual deficit of the German state economy to 0.35 % relative to GDP.

Removing or changing the debt brake requires a change in the German Constitution, which requires a two -thirds majority in the Bundestag.

Partially a far -right option for Germany (AfD) is the only one of the parties past in Sunday’s elections that completely rejects making changes to the debt brake. However, AfD is unable to crush changes to the debt brake alone.

In their election program The CDU said he still holds the debt brake. However, Merz, chairman of the CDU, had begun to withdraw from the traditional positions of his party and said he was open to changing debt control.