The results of Germany’s federal election have brought temporary relief to financial markets, as the CDU/CSU alliance secures victory. However, industry leaders are calling for urgent reforms to restore economic competitiveness.
The Frankfurt stock market saw gains following the election, and the euro strengthened. Defense industry stocks have surged due to anticipated increases in military spending. However, executives warn that deeper economic challenges persist, including sluggish productivity and high costs.
Many business leaders stress that policy changes, particularly regarding taxation and investment incentives, are critical to long-term stability. The coalition negotiations in the coming weeks will determine how effectively Germany can implement pro-business policies.
