SPD's Scholz firming German election lead with TV debate win

Reuters reported that the Social Democrat (SPD) candidate to become Germany's next chancellor beat his conservative rival in a primetime TV debate on Sunday.

This is seen to further boost his campaign to succeed Angela Merkel in an election in two weeks' time.

''The SPD leads the conservatives in polls and its candidate Olaf Scholz, currently finance minister, brushed off verbal attacks from Armin Laschet on his record on tackling money-laundering and whether he would ally with a far-left party,'' the news agency said. 

''A snap poll for ARD television taken soon after the 90 minute debate showed that 41% of those asked thought Scholz was the most convincing performer, compared to 27% for Laschet and 25% for the Greens candidate, Annalena Baerbock.''

Market implications

The markets are pricing in a three-way coalition.

However, this means several months of uncertainty as it will take a longer time to negotiate during which time Merkel remains chancellor.