German growth could curb political polarisation
Germany's economic recovery could reduce political polarisation seen in recent elections if citizens feel the benefits. Savings banks chief Ulrich Reuter noted strong startup growth and rising loan demand.
Germany's nascent economic recovery could reduce political polarization following recent regional election gains for fringe parties, according to the country's savings banks association. The government raised its economic growth forecast to 1.3% for 2026 and 1.1% for 2027, up from previous projections of 0.5% and 0.9%. This pickup provides relief to Chancellor Friedrich Merz after sluggish momentum fueled support for the far right and far left in September.
