Now that the coalition has been formed between Merkel’s conservative Christian Democrats (CDU/CSU) and the Social Democrats (SPD), what does this mean for business and is this set in stone? Despite the new Wirtschaftswunder*, which has seen the country constantly break growth records, German industry remains cautious. The influential Federation of German Industry is ‘not happy’ about the course set by the new government and has thus warned that the political measures agreed do not go far enough to make the economy fit for the future. The financial market has shown an indifference to the breakthrough – the DAX barely moved when the coalition was announced.

Our experts Martin Kothé (Berlin) and Alex Deane (London) share their thoughts and insights on this topic in the podcast below following an event in London earlier this week.

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