IFO chief economist with comments following latest data release 25 Sept
- "Jamaica" coalition will be hard to form
- no indications of change of course for German economy
- German Q3 GDP will be somewhat weaker than in first 2 quarters but will have very good year
The "Jamaica" coalition is so-called because of the colours of Jamaica's flag. It includes the black CDU/CSU, the yellow, business-friendly Free Democrats (FDP) - who are returning to parliament after a four-year hiatus - and the Greens.
Meanwhile Social Democrat ( SPD ) leader Martin Schulz says:
- we have a duty to offer Germany a strong opposition after election
The SPD also had their worst election result since 1949. The party's loss of support while junior partner in government saw Schulz declare the end of the "grand coalition" with Mrs Merkel's alliance, to cheers and applause.
"It's a difficult and bitter day for social democrats in Germany. "We haven't reached our objective."
He also vowed to prevent the AfD from being the main opposition party.
EURUSD still near session lows at 1.1905 with EURGBP dipping again to 0.8796 sending GBPUSD back up to 1.3535
Keep up at the back!
Difficult times ahead for Merkel
