On Monday, DAX, the main German stock exchange index, was 1 of the most affected in Europe. It fell by 10 percent and only then improved slightly. It's a result. Investor reactions to US President's announcement of dutieswhich seem to aim to change the order of the planet economy.
— The situation in global equity and bond markets is dramatic and threatening “ Friedrich Merz admitted on Monday. “For Germany it is more crucial than always to reconstruct competitiveness. This must be the core of the coalition talks.
The strength of the German economy lies in the export of goods specified as machinery, chemicals and vehicles, and the United States is simply a key outlet. German exports have already become little competitive in fresh years, for example due to higher energy prices, and the 20% tariff introduced by the Trump administration is another unwanted news for industry.
Market shock has made coalition negotiations even more urgent between Merza and Social Democrats. CDU won the election on February 23, but did not win the majorityWhich forced Merz to talk to the SPD to form a government. Coalition negotiations were briefly halted on Monday because, as reported by German media — Merz, outgoing Chancellor Olaf Scholz and SPD leaders led Consultation on responses to United States actions.
Merz, for years a hawk in fiscal matters, has already met with discontent in the organization after supporting the amendment to the Constitutionthat would let new debt of up to EUR 1 trillion (about PLN 3.9 trillion) — the key postulate of the SPD and the Greens. His Monday comments aimed to remind of the conventional emphasis of the CDU on fiscal and economical discipline in the changing global landscape.
