This year can be crucial, looking at the consequences post European Elections 2017. Will it put the market on edge? Following Brexit and a string of EU elections, some analysts see uncertainty in Eurozone future.
28 February, AtoZForex – This year is going to be crucial for the Eurozone. General elections in three EU founder member states can dramatically change the political geography of Europe in 2017. The Netherlands, France, and Germany will hold elections between March and September. The outcomes of these elections will help determine the future of Europe’s common currency. Moving further, the fourth member state, Italy, may hold a vote by the end of the year. Considering the uncertainty that awaits, the EU major players are making moves to support themselves for whatever the future brings.
Uncertainty in Eurozone’s future
Following Brexit rattled the EU last year, a series of high-stakes elections could bring even greater uncertainty to the alliance in 2017. Yascha Mounk, lecturer on political theory at Harvard University, stated that there is a huge uncertainty going into 2017. He added:
“If people think it’s impossible for Marine Le Pen to win, they’re making the same mistake that a lot of my friends made in thinking that Trump couldn’t win.”
The uncertainty has provoked the currency area’s members to start exploring their options. For example, on Thursday the Dutch legislature authorized an inquiry into the Netherlands’ future relationship with the Euro.
Will consequences post European Elections 2017 leave the market on edge?
A string of elections and referendums across EU in 2017 could force the Europe into chaos as a wave of populism sweeps the continent. Moreover, the Brexit vote followed by Trump victory has sparked a wave of anti-establishment sentiment. Considerably, the right-wing populist parties could win several key elections. Politicians such as Netherland’s Geert Wilders and France’s Marine Le Pen are in with a fighting chance of winning power in coming months. Victories for parties such as Le Pen’s Front National and the German AfD could fuel a slate of Brexit-style referendums which might bring the end of the Europe.
After decades of a liberal world order, these right-wing parties could also put an end to multiculturalism and open immigration in EU. In Italy, almost half of its electorate supports parties want to leave the EU. As a result, this can put international markets and EU governments on edge.
What role will Grexit play for Eurozone’s turmoil?
Meanwhile, the threat of Greece exit from the EU looms large. Because Greece’s alliance government does not hold the majority of the Parliament seats, it could collapse even if a few lawmakers were to change their allegiances. Moreover, the early elections in the country could turn into a referendum on EU membership. So soon after the Brexit, a Grexit could deepen the European Union’s turmoil and could influence elections elsewhere in the EU.
What can be the consequences post European Elections 2017? Let us know in the comments section below.