Moscow. September 25. INTERFAX.RU – on Monday the Euro depreciates relative to most world currencies, including US dollar, as preliminary data indicate the worst result of the ruling bloc of the Christian democratic Union (CDU) and Christian social Union (CSU) in the elections to the Bundestag since 1949.
German Chancellor Angela Merkel will head the government for a fourth term, but she has to deal with the most fragmented Parliament in the modern history of Germany.
Euro at 9:25 Moscow time on Monday was worth $1,1921 compared to $1,1951 at the end of North American session on September 22. The dollar against the Japanese national currency rose 0.2% to 112,22 yen. The value of the Euro versus the yen stable – 133,82 yen. Paired with the pound, the Euro lost 0.5%, the canadian dollar 0.3 percent.
According to published on Monday morning to official data, the CDU/CSU is leading in the elections to the Bundestag, receiving 33% of votes. According to preliminary estimates, the deputies of the CDU/CSU will take 246 seats out of 709 – 65 less than in the previous elections.
In second place (20,5%) – social Democrats (SPD), their rates were the most unfortunate since the Second world war. The presence of the SPD in the Bundestag will be reduced to 40 seats.
Far-right party “Alternative for Germany” (ADH), established only four years ago, scored 12.6% and first took place in the Bundestag (94). This party opposes further EU integration and considers dangerous the growing number of Muslims in the country.
According to analysts, the negotiations on the establishment of a coalition government in Germany for some time pushed the problems of the Eurozone and negotiations about a British exit from the EU (Brexit). “It will take some time before we will have a coalition and not expect that the discussion will go smoothly,” – says the head of the trading division MPPM EK Guillermo Hernandez Sampere.
“We continue to expect stronger European integration, but at a slower pace. We would like to warn against excessive exaggeration of the significance of the results of ADH: they slightly increase negative for investors, but ADG is a small party and her government will not” – said economist at UBS Ricardo Garcia.
In addition, the Bundestag passed the Left party (9.2 per cent) and green party (8.9 percent), which improved the results from previous elections. Also a 5% barrier Free democratic party (FDP), voted for 10.7% of the voters.
Merkel now there are two ways, experts say. The first is to add “green” to the coalition with its traditional partner the FDP. Due to the party colours of green and FDP (orange) this option is called “Jamaica coalition” or simply “Jamaica”. The second option is to negotiate with the SPD.