GIS Weekly Brief

?? Weekly update by Prince Michael von Liechtenstein

Germany’s elections delivered a clear verdict – the ruling coalition of Social Democrats (SPD), Greens and Free Democrats (FDP) suffered a major defeat. The Christian Democratic Union (CDU) emerged as the strongest party, while the Alternative for Germany (AfD) secured second place, surpassing 20 percent of the vote. Despite efforts by mainstream parties to isolate the AfD, its strong showing underscores shifting political dynamics.

The CDU now faces the challenge of forming a government. Voters have signaled a desire for change, yet the party is leaning toward a coalition with the Social Democrats – the biggest losers of the election. The SPD, leveraging the so-called “firewall” against the AfD, could use its position to resist necessary reforms and maintain high government spending instead of pursuing fiscal restraint. If this scenario unfolds, Germany’s economic and political stagnation will continue.

?? This week’s relevant geopolitical events

• The White House is?considering charging central banks for keeping their reserves in U.S. dollars?– estimated at around $9 trillion globally. If implemented, this would not only impose costs on foreign central banks but also risk devaluing the dollar, resulting in high losses on the foreign central banks reserves.
• Kurdish authorities in northern Syria have recognized the Damascus government, marking a step toward reducing tensions with Ankara.

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