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Euro rallies after German election, focus turns to debt brake - REUTERS

FEBRUARY 24, 2025

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Summary

  • Euro touches one-month high, German stocks firm
  • Likely two-party coalition positive for policymaking
  • Focus on whether "debt brake" can be reformed

LONDON, Feb 24 (Reuters) - An election win for Germany's conservatives eased concerns of political gridlock on Monday, but failed to lift uncertainty around whether a new government can deliver the fiscal reforms markets see as vital to boosting an ailing economy.
The euro briefly touched a one-month high and stocks rose on Monday after the conservatives looked most likely to form a two-party coalition with the Social Democrats, which could make policymaking easier than for the outgoing three-way coalition.

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