Barclays Says Merkel Likely To Remain In Power, But Watch For Surprises

German elections are likely to occur September, a Barclays report noted. While German Chancellor Angela Merkel and her Christian Democratic Union (CDU) is expected to remain a collation partner, the issue is how that partnership will take place. Markets appear complacent with a Merkel victory, which Barclays says is likely, but they warn that a surprise could result in a significant market negative due to complacency.

German politics becoming more fractured, with six parties for the first time since 1957 likely to end in Merkel win regardless

The exact date of the German election is likely to be September 17 or 24, dates recently approved by the government. The German president will determine...