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German Elections and Markets

Bloomberg Surveillance

CHAPTER

Fringe Politics and Economic Challenges in Germany

This chapter explores the rise of fringe political parties in Germany, particularly focusing on the far-right Alternative for Germany (AFD) and its impact on public sentiment regarding migration and economic issues. It examines the struggles of the current government against a backdrop of economic stagnation and bureaucratic challenges, as well as the historical context of East Germany's post-communism transition. The discussion also highlights the geopolitical implications of Germany's political dynamics in relation to Europe and the United States, including the effects of American protectionism.

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