How Angela Merkel's future could influence European markets

A new direction for Germany?

clock • 4 min read

Markets have largely brushed off speculation about the future of German Chancellor Angela Merkel as she stood down as leader of the Christian Democratic Union party. However, Franklin Templeton's head of European fixed income David Zahn believes her decision could have ramifications, both politically and economically, in the not-so-distant future.

We've long argued that politics and European Central Bank (ECB) monetary policy are the most influential factors governing the direction of European fixed income markets. Recent events in Europe have done little to dissuade us from that belief. The decision of German Chancellor Angela Merkel to step down as leader of the Christian Democratic Union (CDU) has potentially significant implications for both the political and monetary policy scenes in Europe, in our view. Angela Merkel to step down as German Chancellor in 2021 A new direction for Germany? Market response to the news ...

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