The results of the live German elections: AFD surge of far right is a warning to the other parties of Germany, says the Merz winner

Nick Edser
Business reporter

The source of the image, Reuters

The euro has reached a high level of one month, and German stocks increased after conservatives have won the elections as expected, but analysts say that the new government can increase the expenses.

Shanti Kelemen, investment director at M&G Wealth, told the BBC Today that the wait is that the new government will “spend a little more money, probably in defense, but also to start the economy.”

A slight growth of the euro reflects that if Germany can increase a higher increase, “you may not have to reduce interest rates as much in the euro area.”

The euro reached $ 1.05 at one point before falling back. On the German stock market market, the DAX index of leading shares increased by 0.8%.

Susannah Streetter, the chief of money and markets at Hargreaves Lansdown, mentioned that the increase of government spending in Germany was not simple due to strict rules.

While Friedrich Merz “seems determined” to reform the so-called debt brake, which limits the annual loans by the federal government to 0.35% of GDP, she said “it will not be simple, because it will need a majority of two -thirds in Parliament ”.