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Germany is by far the most important country within the Eurozone, accounting for well over a quarter of the area’s GDP, the largest exporter and the only major country with a budget surplus. Consequently, a political crisis in Germany is sure to have an effect on the area as a whole, influencing not just the DAX, but also the Euro.
Additionally, the President of the ECB’s tenure is up soon, and is currently held by Italian Mario Draghi, with a German representative seen as a likely candidate to replace him – that is, assuming the current administration in Berlin stays in place. But will it?
How did we get here?
Angela Merkel has been the Chancellor of Germany since 2005 and is widely seen as the de facto leader of the European Union. However, things haven’t been going so well for her in domestic politics of late. Following poor performance in opinion polls, the “grand coalition” she led was severely punished in the 2017 federal elections, and it was...
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