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SHANGHAI, CHINA, March 07, 2018 /24-7PressRelease/ -- Ending 5 long months of political uncertainty, Germany's Social Democrats (SPD) on Sunday voted in favor of a coalition with Chancellor Angela Merkel's conservatives, paving the way for a new government to be established in Europe's biggest economy several months after the country's inconclusive election.
66 percent of SPD members voted in favor of the coalition deal that could see Merkel serve for a fourth consecutive term. Ashton Whiteley analysts say that initial reactions from investors suggest that the German coalition deal will help the euro as well as bond and stock markets.
An Ashton Whiteley analyst stated that this outcome is one that markets have been hoping for as it is the least disruptive result, providing a more stable foundation from which to address the many problems facing the German economy.
Economists believe that the German result will pave the way for Germany to receive French President Macron's plan for the future of Europe more willingly.
Macron's office stated that France and Germany will work together on the progress of the European project in the next several weeks.
Businesses in Europe's largest economy were also happy with the result after the country's longest post-election interregnum in history.
With the issue of Germany's next government resolved, Italy now comes under scrutiny. The country held a national election using a new voting system. Ashton Whiteley analysts say a hung parliament is widely anticipated.
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