German elections spark optimism for economic reforms and market growth

Germany is set for elections this weekend, with the centre-right Christian Democrats (CDU/CSU) leading in polls at 29%. The far-right Alternative for Germany (AfD) follows at 21%, while Chancellor Olaf Scholz's Social Democratic Party (SPD) is at 16%. The new government will likely focus on reforms to the debt limit, immigration laws, and green energy policies. Economic challenges, including a contracting economy and rising living costs, have increased public demand for these reforms. Market sentiment is optimistic, with the DAX hitting new highs. A CDU-led coalition could boost investor confidence, but prolonged coalition negotiations may create uncertainty, affecting the euro and stock markets.