The purse strings have been loosened and will stay that way, no matter who heads Germany¡¯s new government. That¡¯s the verdict from investors who see potential gains for segments such as green finance alongside modestly higher bond yields.
After Finance Minister Olaf Scholz¡¯s centre-left Social Democrats (SPD) narrowly defeated the ruling Christian Democratic bloc (CDU/CSU) in Sunday¡¯s election, both parties will woo the Greens and the pro-business Free Democratic Party (FDP) to form a coalition.
Based on the colors of the parties involved, a potential Social Democrat-led alliance has been dubbed the ¡®traffic light¡¯ coalition, with a conservative-led one named after the flag of Jamaica.
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