The euro could receive a boost if the next German chancellor favors more fiscal
stimulus, MUFG Bank says. Friedrich Merz--the vice president of the CDU party's
Economic Council who is expected to enter the race to succeed Angela Merkel as
chancellor at next year's election--last week said he favors giving back half of
Germany's EUR50 billion budget surplus as a radical tax cut for the public, the
Financial Times reported Tuesday. "A potential shift to a looser fiscal policy
stance in Germany could ultimately turn out to be more supportive for the euro
further down the line," MUFG currency analyst Lee Hardman says. EUR/USD is last
flat at 1.0915.
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