German stocks fall as political uncertainty creeps in

It was supposed to be a straightforward appointment for Friedrich Merz to be German chancellor today. But when push comes to shove, it turned out to be anything but that. It’s a big and embarrassing setback for Merz and his coalition, who by the way commands 328 votes in the Bundestag, yet he only managed to secure 310 votes today. He needed 316 votes to secure a majority.

We’re now in a bit of an unprecedented situation in German politics. No candidate for chancellor has ever failed in the first round of voting. However, the constitution does allow up to 14 days for a new round of voting. But will we see another vote today? Or tomorrow? Nobody knows for sure. But the worry here is that the CDU/CSU/SPD coalition may already be damaged before it even begins governing.

This article was written by Justin Low at www.forexlive.com.