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Statement on the Election of Donald Trump as US President

I expect the German economy to withstand the challenges arising from a Trump presidency. German companies are competitive, flexible and well diversified globally. I don’t expect that Germany’s trade with the USA will suffer significantly. My main concern is the European economy, which is still mired in a deep economic and financial crisis. The US election makes it more urgent than ever to speed up reforms and give the European economy a growth stimulus. I expect the euro to appreciate moderately, similar to what happened during the financial crisis in 2008, as the euro is a strong and credible global currency.

The root cause of the election outcome is the growing economic and social inequality in the USA and the failure of the American Dream. A majority of Americans have realized that politicians had broken their promise of equal opportunities for all. 
However the USA have a strong democracy, that will be able to cope with Trump as its president. Despite his outrageous campaign promises, the soon most powerful man in the world will end up almost powerless. I don’t expect major negative economic consequences from the election. Trump will not be able to fulfill any of his threats, such as for the US to leave the World Trade Organization, to denounce the NAFTA agreement with Mexico and Canada or to dramatically increase public debt.  

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