ING: Poor performance in regional elections exacerbates economic woes for German government

Kasten Brzeski, head of macroeconomics at ING Group, wrote in a report that the poor performance in regional elections has exacerbated the economic woes of the German government. In elections held in two eastern states over the weekend, the three parties that make up the ruling coalition in Berlin were almost all defeated, with the far-right Alternative for Germany party winning for the first time at the state level. “This is a huge blow to the government,” Brzeski said. He said the next question is whether Chancellor Schultz will adopt a stronger economic policy as the eurozone’s largest economy stagnates, or whether the political deadlock will worsen.