03:56 GMT +318 June 2019
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    Euro Drops Against Dollar as German Coalition Talks Fail

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    Early on Monday, the German Free Democratic Party (FDP) announced its withdrawal from the coalition talks with the union of the Christian Democratic Union of Germany (CDU) and the Christian Social Union in Bavaria (CSU), led by Chancellor Angela Merkel, and the Greens.

    MOSCOW (Sputnik) Euro fell by as much as 0.6 percent against the US dollar against the backdrop of the coalition talks falling apart in Germany, the Financial Times newspaper reported Monday.

    According to the newspaper, the European single currency dropped to $1.17 in the morning, which is the sharpest fall by the Euro within a month. The currency also lost 0.4 percent against the UK pound, trading at 0.89 pounds, the media added.

    READ MORE: Germany's Greens Slam Merkel Alliance's Agreement on Refugee Cap

    The coalition talks became necessary after the German parliamentary election, held on September 24. The ruling CDU/CSU alliance got 246 seats in the 709-seat parliament, while the FDP secured 80 seats, and the Greens have 67 seats. The second largest party in the current parliament, the Social Democratic Party (SPD), has ruled out forming a Grand Coalition with the CDU/CSU bloc, and both the ruling union and the SPD have excluded the possibility of forming a coalition with far-right Alternative for Germany party, which is the third largest party in the Bundestag with 94 seats.

    One of the most likely scenarios for the development of events is holding of new elections to the Bundestag.

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