The Euro could encounter problems in 2019 if forthcoming elections hit financial links between Germany and Italy, according to Hudson Institute economist Brendan Brown. He said if the Merkel government in Germany fell it would raise questions about the country’s financial supplies to Italy, vital to stemming the latter country’s falling markets and rising debts. More anti-establishment populist governments taking power could create greater protectionism, he warned. “Italy is a very important country for Germany, but it’s also an extremely important market for Italy,” Brown said. He said the Euro could peak in the middle of 2019, then fall, as a result.
The Euro could encounter problems in 2019 if forthcoming elections hit financial links between Germany and Italy, according to Hudson Institute economist Brendan Brown. He said if the Merkel government in Germany fell it would raise questions about the country’s financial supplies to Italy, vital to stemming the latter country’s falling markets and rising debts. More anti-establishment populist governments taking power could create greater protectionism, he warned. The US may also pressure the European Central Bank to raise the Euro’s value. He said the Euro could peak in the middle of 2019, then fall, as a result.