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Following Sunday's general election, Chancellor Angela Merkel's
recent coalition partner, the Social Democrats (SPD), said it
would go into opposition, meaning she is now likely to seek a
deal with the Free Democrats and Greens.
Coalition talks are sure to be highly complex, but could see the
Greens pressing their key policies on the energy and autos
sectors, which are already grappling with Germany's shift away
of nuclear power and a diesel emissions scandal, respectively.
Among their policies, the Greens hope to ban the sale of new
combustion-engine cars from 2030 - a decade earlier than plans
already outlined in France and Britain.
"On the whole, the Greens pursue more ambitious goals and a more
radical response to the diesel scandal," Morgan Stanley analysts
wrote in a note on Monday.
The Greens are also calling for a quick phasing out of coal
power plants and their complete closure by 2030.
Shares in carmakers BMW, Daimler and Volkswagen <VOWG_p.DE> were
down 0.1-0.7 percent on Monday, while those in RWE - which
operates 15.25 gigawatts (GW) of coal-fired plants in Germany,
38 percent of its total European capacity - fell 4.1 percent to
a six-week low.
Analysts at Jefferies, however, were skeptical coal plants could
be phased out as quickly as desired by the Greens, saying the
2030 deadline would withdraw capacity currently providing about
half of the country's total electricity generation.
"Even if we assume that half of the market share gap is filled
by the existing gas capacity in such a scenario, Germany will
have to build an additional 130 GW of renewables to balance the
market ... We struggle to add the maths in such a scenario,"
they wrote in a research note.
(Reporting by Christoph Steitz; Editing by Mark Potter)
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