The Christian Democratic Union Party's win in Germany ensures that Europe's biggest economy is likely to continue to lead on climate change — though with a different framing and focus. Why it matters: Germany has taken aggressive action to lower emissions and push so-called "green" policies within the European Union and internationally.

On average, market analysts anticipated positive development, so the outcome led to some pressure on the single currency, which fell below $1.05. Over the weekend, Germany's parliamentary elections largely aligned with expectations, confirming the transition of power from Scholz to Merz. The latter announced a course of "independence from the US."