Germany: Bremen matters

Carsten Brzeski, chief economist at ING, suggests that Germany is heading towards another make-it-or-break-it election on 26 May and the fate of the German coalition depends on it.

Key Quotes

“Bremen is the smallest state in Germany and one of the poorest, with the highest unemployment rate. A port city with a long and proud history, in which the Social Democrats, the SPD, have ruled in various coalitions almost continuously. And now, the red fortress is about to fall for the first time since World War II. Why should anyone outside of Bremen care? Because if the SPD suffers another severe defeat, it could have consequences in Berlin.”

“In Bremen, the mayor election is a neck-and-neck race between the SPD and the CDU, with the very latest opinion polls seeing a lead for the CDU. If Bremen changes its political colour, there is a high risk that the SPD will withdraw from the federal government.”

“Losing Bremen would be more symbolic than losing in the European elections. But add to this the frequent speculation in the German media about Chancellor Angela Merkel stepping down before the 2021 elections to pave the way for a successor, and the ingredients for a stormy political summer in Germany are all in place.”

“When watching election results on Sunday, don't just focus on the European elections, keep a close eye on Bremen, too. The noise that these state elections produce could make their famous town musicians proud.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.