The Corner

Deeper into the Mire

Matters just got a lot trickier for the Euro. Angela Merkel’s CDU has lost control of prosperous Baden-Wurttemberg, a Land that it has held since 1953. If anything, this defeat reflected German voters’ revived fears of atomic power (the Greens did very well) and understandable cynicism over Merkel’s post-Fukushima about-face over the country’s nuclear program. Nevertheless, regardless of the reasons for the chancellor’s electoral humiliation it will further restrict both her ability and her willingness to offer the Eurozone the sort of extended long-term underwriting that it will need if it is to avoid stumbling from crisis to crisis.

And that fact has brought the next crisis just that bit nearer.

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