5/28/2019 0 Comments European ElectionsWith the elections over it is time for the top jobs of the new European parliament to be hashed out. The current climate of Europe after the elections is a bit mixed, but far from the greatest fears that could have manifested. The Traditional parties were uprooted with the Peoples' party and the social democrats (the usual center parties that take 50% of the votes) failing to get a majority for the first time. On the bright side it wasn't the far right euro-skeptics that have seized all the power. Though there have been gains in the far right in places like Italy, others like in Greece saw their extreme governments come back into the centrist realm (and markets moves accordingly).
This is no doubt going to introduce volatility into the markets in the near team but the implications of how a coalitions gets formed will have a much larger and lasting effect on the Euro and the underlying countries. By failing to integrate more, the union will be unable to prepare and react to another crisis in the region, or even a modest slowdown. With one of the main positions to be filled being that of the ECB head, the people who get placed into these roles will be a deciding factor in the valuation of the currency, spreads among member countries, and market valuations.
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