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German Election Results Expected to Extend European Slow-Roll Recovery

German Election Results Expected to Extend European Slow-Roll Recovery (CNBC)

Heading into the Sept. 22 elections, polls indicate that German Chancellor Merkel’s conservative CDU/CSU coalition would capture 38 percent of the vote.  However, even when combined with the coalition’s junior partner (the Free Democrats) and its 6 percent of the vote – that would only total 44 percent of parliament, not enough for a majority. Should these predictions be borne out, Merkel would likely gain a third term, but would also be forced to form a “grand coalition” with rivals, which would ultimately result in a more euro-friendly government and an extension of the status quo. In which case, investors would still have no clear-cut indication of which way the markets will go.

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