Following Germany’s federal election, financial markets have responded positively, with investors anticipating stability under the CDU/CSU leadership. However, economists warn that Germany’s long-term fiscal health depends on key policy decisions, particularly the controversial “debt brake” rule.
While defense industry stocks have soared, concerns remain over sluggish consumer spending and rising costs. Business groups are pushing for tax incentives, infrastructure spending, and regulatory reforms to stimulate growth.
With coalition negotiations underway, Germany’s economic future hinges on how the new government balances fiscal responsibility with the need for investment.
