On Monday, DAX, the main German stock index, was one of the most affected in Europe. Fell by 10 percent And only then did he improve a bit. This is the result of investors' reaction to the US President's announcement of duties that seem to be aimed at changing the order of the world economy.
– The situation on international stock and bond markets is dramatic and threatens to deteriorate Friedrich Merz admitted on Monday. – For Germany, it is more important than ever to restore competitiveness. It must be the core of coalition talks.
The strength of the German economy lies in the export of goods such as machines, chemicals and vehicles, and the United States is a key market. German exports have become less competitive in recent years, including Due to higher energy prices, and the 20 % tariff introduced by Trump's administration is another undesirable news for the industry.
The market shock made coalition negotiations between the Christian Democrats of Social Democrats even more urgent. CDU won the election on February 23, but did not win the majority, which forced Merz to talk to SPD to create a government. Coalition negotiations were briefly suspended on Monday, because – according to German media – Merz, the outgoing chancellor Olaf Scholz and SPD leaders led consultations on the response to the actions of the United States.
Merz, for years, Jastrząb in fiscal matters, has already met with dissatisfaction in the party after supporting the amendment to the constitution, which would allow new debt of up to 1 trillion euros (approx. PLN 3.9 trillion) – a key postulate of SPD and green. His Monday comments were aimed at reminding the traditional pressure of CDU to fiscal and economic discipline in the changing global landscape.
