Politicians, economists and CEOs respond to the outcome

As a new chapter in German politics begins on the weekend following federal elections, there is a clear sense of deja vu in Berlin as the Centre Wright Alliance prepares to take the reins again in Berlin.

The conservative alliance, made up of the Christian Democratic Union (CDU) and its sister party, the Christian Social Union (CSU), won 28.6% of votes in Sunday’s vote, and then placed second in Germany with 20.8 (AFD) ) was followed by far-right alternatives. According to preliminary results from federal return officials, the percentage and the Social Democrats (SPD) on the left came in third with 16.4%.

The results are expected to be confirmed on Monday, with CDU-CSU’s Friedrich Merz likely to become Germany’s next prime minister to take over SPD’s Olaf Scholz after his three-person alliance collapsed later last year. means that it is high.

CDU-CSU is unfamiliar with the power that led multiple “grand unions” in Germany over the last century. Currently, although the Greens are not excluded from partnerships with the union, it is expected that the Central Left SPD will form a new “old” coalition, the alliance’s most likely partner.

However, while the new German leadership remains familiar challenges, there is a need to increase domestic spending. Many of these are subject to German lawmakers being able to reform the restrictive debt restriction rules known as the “debt brake.” Immediate and urgent concerns.

Then there is Germany’s difficult relationship with US President Donald Trump when he threatens trade tariffs that further hurt Germany’s limping automotive industry.

While German and American politicians, economists and business leaders have no doubt about the hurdles faced by the new government, the outlook for the new administration burned hope that there would be a change in the struggling economy.

Here are some immediate reactions to the German election outcome:

“We won because CDU and CSU worked so well to take over this election and governance responsibility,” Meltz said on Sunday, an exit poll showing the alliance’s victory.

At a press conference Monday, Meltz revealed that he is aiming for a coalition with the SPD, saying talks could begin soon.

“It’s a fierce election outcome for the Social Democrats. It’s also an election defeat (and) I think that from the start, given these outcomes, I need to be clear for a while,” Scholz said. said at the headquarters of the Sunday night after SPD’s Drab on the poll.

“I am also responsible for this election outcome as the outcome is bad this time,” he added.

Forming a new coalition “will be complicated,” Bruzesky told Annette Weissbach of CNBC in Berlin on Monday.

“We only have one option. It’s another epic coalition. The problem is that SPD is so hurtful, this is the worst outcome ever.

“We’ll receive a bit of circular support. We’ll receive tax cuts. We’ll probably get some investment programs. The current constellations of the next Congress, this is impossible,” he warned.

Siemens Energy Chairman Joe Kaeser told CNBC that the new German government faces a “pretty difficult battle” and requires a long-term agenda to rebuild Germany over the next five years.

“It’s a case of a restructuring. We need to be honest about this,” he told CNBC’s Julianna Tatelbaum on Monday.

Kaeser said the 2030 Agenda requires five key areas focused on economy, infrastructure, energy, education and innovation. This stated that it will restructure the pension system and, finally, “restore government control and government reform.”

“The German people are wondering, is our country safe? And they wonder if the government and institutions control everything. That’s what many people have in this It’s one of the main reasons why we’re looking for AFD: the government, our state, our country, we’re still under control.”

“From our perspective, it’s time to actually act. After yesterday’s election, a new German government was formed quickly, with decisive and immediate action, and a long, clear, long-term vision and road. I hope to get on the map. He told CNBC’s Carolyn Ross on Monday.

“I think German manufacturing needs urgent action in terms of taxes, energy costs and labor market flexibility. Three big things that are important for everyone in the manufacturing sector. There is. Of course, regulations are the biggest issue in the automotive industry.”

“It appears that the German Conservative Party has won a very high expectations of election. Just like America, the German people were tired of the common sense agenda, particularly on energy and immigration. “Trump.” The president posted on the truth social on social media platforms on Sunday night.

“This is a great day for Germany,” he added.

“I think it’s very good news for Germany. I’m actually very close to Friedrich Merz,” said Emerson, a former US ambassador to Germany, in a comment Monday by Friedrich Merz on Sunday night. “We will strengthen” his priorities. We will enable Europe to achieve true independence from the United States in stages as soon as possible.

“I think he’s seriously dead about where he spoke (Sunday night), effectively declared independence from the United States, and (Vice President of the United States) JD Vance and Donald Trump complain. You can’t,” Emerson said on CNBC.

“Meltz is a free trade guy… So when I hear him talking about independence, we hear “we need to reach a point where we can stand alone.” More on military capabilities spending and building. I’ve heard it as a national security issue than Meltz is doing his second job.

Herero, a senior fellow at the economic think tank Bruegel, said that for Germany, “what will happen in the US on tariffs,” is extremely important for Germany. “I think Europe is awakening, and Meltz is the best example of this,” she told CNBC on Monday.

“They (the European leaders) realize they need to get closer, and it’s a silver lining that can make Europe stronger, and Germany can make Germany stronger, but , which means Germany needs to break its debt.”

Feld was also a former adviser to former German Federal Finance Minister Christian Lindner, who commented on the possibility of a new special fund after the current person expired.

“I think it’s very difficult to interpret just because the AFD and the left party are together, just because it’s not easy to change the constitution. That means the new government will be special for defense. It means you want a fund or not, and that’s definitely not going to happen,” he said.

“The current special fund will close in 2028 and will require additional funds after that. This will be easily resolved within the current special fund, especially if a prompt re-contract of German presidencies of the German Army is required. Not possible, this makes sense. It is not the case that you are not the one who will reform the debt damage, whether or not the other members of the left party of the Congress are supporting this. You only need a few people. Those member councils.”

“That’s a historic result. We’ve doubled the numbers. We’re the only opposition now, not from the left, so we’re pushing the new government even further,” he said in an interview with CNBC. Ta.

The Christian Democrats (CDU) were campaigning on illegal immigration and by changing policies regarding the economy and energy. “The SPD, the Social Democrats and the Olaf Scholz Party,” she said.

“So everything they promised, they can’t deliver, and we make it very clear. Of course we support all the moves and all the laws regarding stopping illegal migration. But that’s never enough.”