According to analysts at ABN AMRO, fragmentation rather than populism the risk in upcoming European elections with a number of elections that are set to take place in Europe in the coming year (Finland, Spain, Belgium, the European parliament, Portugal and Greece will all hold elections).
Key Quotes
“Populist parties will generally not dominate proceedings and in most cases we expect market-friendly outcomes.”
“The bigger risk is political fragmentation, where the traditional more centrist parties have lost ground, and government formation might be difficult. This is will particularly the case in Spain and in Belgium. In the European parliament, fragmentation may also create some difficulties.”
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