Europe: Most important elections in decades – Standard Chartered
|According to Christopher Graham, economist at Standard Chartered, European parliamentary elections are being held on 23-26 May and could be the most important in years, with populist, Eurosceptic parties potentially securing more than 30% of seats in parliament.
Key Quotes
“We are likely to see an end to the centre-left, centre-right grand coalition which has dominated European politics for years, and a more diverse coalition of governing parties emerging as a result, rendering reform efforts and policy-making potentially more difficult than previously.”
“The rise of populist, Eurosceptic parties does not present an immediate existential risk to the EU, given that most parties are no longer pushing to leave the EU but rather reform it from within. However, if these parties can align their interests on key issues, they could become a potent force in the EU legislative process, providing a robust check on the Commission and national governments seeking to adopt a more pro-integrationist policy framework.”
“Investor sentiment is susceptible to the rise in prominence of populist, Eurosceptic parties at the European level; however, given that a centrist coalition is still likely to emerge (albeit with more parties), any immediate market volatility is likely to be tempered.”
“The bigger threat to investor sentiment will be the extent to which fragmentation of the European Parliament (EP) following this election holds back the completion of post-euro area crisis reforms to European institutions and financial architecture, given their importance to the EU’s long-term economic stability.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.