Germany Not such a grand outcome

The political paralysis in Germany is finally coming to an end. It looks like Gerhard Schroeder will finally take the hint and step down after the CDU won a special election held in Dresden on Sunday. This paves the way for a conservative-led grand coalition. That’s better than stalemate, but not much. Even with capital-market orientated Angela Merkel in the driving seat, the new government is likely to duck vital labour market reforms. Left-wing politicians will block liberalising changes, suc...