Non-aggression pact between Germany and the ECB

On the political side, conditions in Germany could hardly be more stable. Nothing points to a premature end to the Grand Coalition government formed by Angela Merkel's Conservative Party and the Social Democrats. 

The next general election is due in autumn 2017 and Merkel (61) has not excluded to run again. Euro-critical parties are not playing any significant political role on the federal level. The relationship between the government and the ECB can be seen as a "non-aggression pact". 

"The ECB's loose monetary policy gets German support, against the different instincts of the Bundesbank, as long as the central bankers don't openly call for much more expansionary German fiscal policy. This "peaceful coexistence" would very likely survive a further easing of monetary policy by the ECB", says Nordea Bank.