European politics emerges as one of the top global risk factors
“The stability of the euro and the futures of the participating countries will continue to be vulnerable to the short-term exigencies of German domestic politics,” wrote Simon Tilford, deputy director of the Centre for European Reform. “This is a recipe for stagnation, deflation and political populism in France and Italy. It may culminate in a breakdown in relations between Germany and these countries and could even lead to eurozone break-up.”