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German elections: a Caribbean hurricane for Europe?

September 25, 2017 by andrew36 Leave a Comment

The Caribbean has been in the news lately for a succession of damaging hurricanes. Yesterday’s German elections seem almost certain to lead to a so-called Jamaica coalition between Mrs. Merkel’s conservatives (CDU/CSU), the liberal FDP and the Greens. (The party colours, black, yellow, green, are those of the island’s national flag). Is Europe in for stormy times? It certainly looks like it.

The debate on reforming the EU and especially the Euro Area is at a critical phase. There has been a flurry of proposals and reflection papers from the EU Commission and think-tanks. Jean-Claude Juncker’s recent State of the EU speech held out the prospect of a push towards deepening EMU. The new French President, Emmanuel Macron, has embarked on domestic reforms, part of the rationale of which is to open up space for Euro Area governance reforms. A speech on this issue is scheduled for this week. Everyone has been waiting for the German elections.

And now this. [Read more…]

Filed Under: Analysis Tagged With: CDU/CSU, ECB, economic policy, elections, Euro Area, FDP, Germany, Jamaica, Juncker, Macron, Merkel, Schäuble, SDP, Weidmann

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