The Euro fell after the appearance of the first reports of the results of the parliamentary elections in Germany, which Angela Merkel remain Chancellor for a fourth term, and the nationalists are in the Bundestag. Preliminary data indicate the worst result of the ruling bloc of the Christian democratic Union (CDU) and Christian social Union (CSU) in the parliamentary elections of 1949. Just in the Parliament are six parties. The government, as promised Merkel, will be formed in time for Christmas.

The European single currency on Monday depreciates relative to most world currencies, including US dollar, reports “Interfax”.

Euro at 9:25 Moscow time on Monday was worth 1,1921 dollar compared to 1,1951 dollar 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.

Recall, the CDU/CSU is leading in the elections to the Bundestag, receiving 33% of votes. However, 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, in a coalition with Merkel’s party and its Bavarian sister this time they, most likely, will not be included.

Right-wing party “Alternative for Germany” (ADH), which advocates for stricter immigration policies, rejection of the Euro and the lifting of sanctions against Russia, gaining 13%, and East Germany – the former GDR – ADH voted almost 23% of the electorate.

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).

Merkel now there are two ways, experts say. The first is to bring to the coalition with its traditional partner the FDP “green”. 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.



Euro drops on election results in Germany 30.09.2017

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