NAB Morning Call

Weekend Edition: Germany: Not a great time to change government


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Friday 21st February 2025


Please note this communication is not a research report and has not been prepared by NAB Research analysts. Read the full disclaimer here.


Germans will head to the polls on Friday. It seems highly likely that the centre-right CDU/CSU will gather the most votes, but over the last few months the right win populist AfD have been closing the gap. Dr Simon Toubeau, Associate Professor of Politics and International Relations at Nottingham University says it’ll be the CDU picking coalition partners in the centre and on the left, with the AfD left out in the cold. But how long will it take to arrive at a new workable government at a time when Europe is in discussions about increasing defence spending to protect Ukraine? How can Germany spend more on defence without undoing it’s self-inflicted debt-break? And where will the government stand on the idea of Eurobonds?  

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