Centre-Right Alliance Takes the Lead
Germany’s Centre-Right Alliance, comprising the Christian Democratic Union (CDU) and the Christian Social Union (CSU), emerged victorious in the recent parliamentary elections, securing the highest number of seats. This outcome indicates a potential shift towards a more innovation-friendly political landscape.
Election Results Overview
The CDU/CSU garnered 28.52% of the votes, while the far-right Alternative for Germany (AfD) followed closely with 20.8%. In the context of the German Bundestag, which consists of 733 seats, no party managed to achieve an outright majority. As a result, coalition negotiations will be necessary to form a new government.
Implications for Digital Innovation
Mark Foster, the European Union policy lead at the Crypto Council for Innovation, expressed optimism regarding the Centre-Right Alliance’s stance on digital innovation. In a pre-election interview, he noted that while significant changes in digital asset policy or the digital euro may not occur immediately, the new administration is likely to foster a climate of openness toward technological advancements.
Foster stated, “I don’t expect a massive change overnight from the previous government to the new government in terms of either digital assets policy or digital euro. However, there may be a willingness to explore how these innovations can enhance the competitiveness of the German and European economies, leading to job creation and growth.”
Current Status of Crypto Legislation
Despite the recent election, the immediate impact on the cryptocurrency landscape in Germany has been minimal. Following the collapse of the coalition government between the Social Democrats (SDP), Free Democratic Party (FDP), and the Greens in November, the country called for early elections.
Germany was notably slow in implementing the European Union’s Markets in Crypto Assets (MiCA) legislation, having passed relevant laws just days before the mandated deadline in December. Nevertheless, the country has successfully processed MiCA licenses in the weeks following the election, and Foster anticipates that the day-to-day implementation of existing EU laws will remain unaffected.
Looking Ahead
As the newly elected members of parliament prepare to take office, their first significant task will be to elect a new chancellor and head of the federal government. The direction of Germany’s policies, particularly regarding digital innovation and the cryptocurrency sector, will become clearer once the coalition is formed and leadership is established.
