Germany: Political defragmentation continues – ING

Carsten Brzeski, Chief Economist at ING Germany, offers his thoughts on the German political environment, especially after the Merkel coalition received a fresh blow on a regional election defeat in the western state of Hesse on Sunday.

Key Quotes:

“Two weeks after the Bavarian elections, voters in the state Hesse confirmed the ongoing process of political defragmentation and a transition to a post-Merkel era - making German national politics even more complicated 

While the CDU had its worst result in the state in more than 50 years, the SPD recorded its worst result since World War II. 

Implications for German national politics:

• Defragmentation of political landscape continues.
• Grand coalition in Berlin won't collapse (imminently).
• The end of the Merkel-era comes closer.”