A Convergence of Issues Weighs on Germany

Adriano Bosoni
Senior Europe Analyst, Stratfor
Feb 13, 2020 | 17:23 GMT
This photo show former German Christian Democratic Union party leader Annegret Kramp-Karrenbauer, who resigned earlier in February.

The resignation of Christian Democratic Union party leader Annegret Kramp-Karrenbauer, who many thought would succeed Angela Merkel as German chancellor, has proven to be a distraction for Germany's governing coalition.

(ODD ANDERSEN/AFP via Getty Images)

Companies and households in Germany will face several sources of risk throughout the year, including political risk from the country's fragile government coalition; economic risk connected to global trade uncertainty and threats to Germany’s exports; and institutional risk, caused by strategic divisions within the European Union that will make it hard for the bloc to implement policy. Germany will continue to be stable and prosperous in 2020, but these risk factors could prove disruptive for business, investors and individuals in the country....

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