Environmental issues did not feature prominently the election campaign— unlike the last time around.When the coalition government comprising the center-left Social Democratic Party, Greens and neoliberal Free Democratic Party emerged after the last German federal election in the fall of 2021,

On average, market analysts anticipated positive development, so the outcome led to some pressure on the single currency, which fell below $1.05. Over the weekend, Germany's parliamentary elections largely aligned with expectations, confirming the transition of power from Scholz to Merz. The latter announced a course of "independence from the US."

Germans are going to the polls on Sunday for national elections. Opinion polls suggest the outcome will be a new chancellor and, likely, a new governing coalition.

Germany is in dire need of a strong and stable government, but voters there may have a long wait until one is formed.