Flash: German electoral shakeup? – Goldman Sachs

FXstreet.com (Barcelona) - The most recent polls in the upcoming German elections suggest that a ‘Grand Coalition’ between Chancellor Merkel’s centre-right CDU/CSU and the centre-left SPD is by far the most likely outcome of the election, followed by a continuation of the current coalition between the CDU/CSU and the liberal FDP.

According to the Economics Research Team at Goldman Sachs, “Neither of these two outcomes would imply a significant shift in the approach of the German government with respect to the Euro crisis. The rhetoric may change somewhat and there may be more emphasis on growth and less on consolidation in speeches and statements. But we think this is unlikely to be backed by actions.”