0703 GMT - The German election results make a two-party government between the conservative CDU/CSU and the Social Democrats $(SPD.AU)$ the most likely result, which is a positive outcome for the German economy, says Danske Bank Research. Friedrich Merz is almost certain to become the next chancellor as his Christian Democratic Party, along with its Bavarian sister party CSU, emerged as the most voted in Sunday's elections. A majority government with the Social Democrats is possible, says Danske's Oscar Christian Dahl Pedersen, because two parties, the Free Democrats and the BSW fell below the 5% threshold to enter Parliament. "A two-party 'Grand coalition' government is a positive outcome because decision making is easier than in a three-party government." (emese.bartha@wsj.com)
(END) Dow Jones Newswires
February 24, 2025 02:05 ET (07:05 GMT)
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