Post-election Germany might offer periphery more support

Yesterday’s narrow loss for Germany’s current governing coalition in the state of Lower Saxony added to evidence that September’s general election could result in a change of government. While Angela Merkel will almost certainly stay in power, she might have to form a Grand Coalition with the opposition SPD. Such a coalition could mean higher taxes, especially for the rich, but it might be more supportive of the euro-zone’s periphery too.