Chancellor Merkel fails to secure German coalition

Political volatility has returned to the Eurozone once again as Angela Merkel has failed to form a coalition government in Germany. The Centralist Free Democrats late on Sunday night pulled out of negotiations to form a new government citing a breakdown in trust and a shared idea. Merkel’s Christian Democratic Union now has to try and entice the CFD party back to the table to stave off further protracted negotiations which all serve to put the Eurozone recovery on hold. Initially markets reacted negatively with the Euro selling off 0.5% against the dollar before recovering sharply as France reiterated its support for Merkel’s coalition.  



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