The German Power Vacuum

In 26 days, Angela Merkel will no longer be relevant. Her sixteen years at the helm of Europe’s largest economy will be over. The departure of such a colossus, whether loved or hated, always raises the spectre of turbulence. A well-respected, experienced and fully endorsed successor inheriting a buoyant economy can mitigate the risks. That is not the case this time. The power vacuum creates a significant risk premium for German assets and the Euro.

  1. No candidate is Merkel

There has been no smooth path towards a popular and fully-endorsed successor . . .

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