Between a pro-European government in France and early discussions of a Große Koalition in Germany, there is political momentum on both sides of the Rhine for a stronger Europe. The two countries could drive the European project further with ten initiatives in five reform areas.
Italy's economy has accelerated over the course of 2017, despite the lingering uncertainty about the 2018 general election. The threat of anti-EU, populist forces coming to power in Italy has receded following the reform of the electoral law.
Populist economic policies can boost growth and financial markets in the short term, but also purport uncertainty and volatility. Populists’ disdain for checks and balances threatens to weaken pluralist democracies. Their predilection for facile solutions rarely results in sound policies.
Allianz Economic Research
Dr. Lorenz Weimann
Phone +49 69 24431 3737
Fax +49 69 24431 6791