WS #15316
European political stability is deteriorating, with Spanish Prime Minister Pedro Sánchez announcing snap parliamentary elections for November 29 after a vote of no confidence on renter protection. This political uncertainty is weighing on the Euro, which has hit 17-month lows against the dollar. The political fragmentation in key European economies is creating headwinds for European-listed multinationals and benefiting US exporters, while also increasing the risk premium on European sovereign debt.
European Political Risk
European political stability is deteriorating, with Spanish Prime Minister Pedro Sánchez announcing snap parliamentary elections for November 29 after a vote of no confidence on renter protection. This political uncertainty is weighing on the Euro, which has hit 17-month lows against the dollar. The political fragmentation in key European economies is creating headwinds for European-listed multinationals and benefiting US exporters, while also increasing the risk premium on European sovereign debt.