The markets hope that after the elections Merkel will be more amenable in areas such as the banking union and additional bailouts for distressed Eurozone countries. Alas, the Germans will not change their stance very much.
"People never lie so much as after a hunt, during a war, or before an election," said Otto von Bismarck. Replacing the word "lie" with "stall" and this captures perfectly the effect the forthcoming federal election in Germany has had on policymaking towards the beleaguered southern states of the Eurozone.
Few politicians have cast such a long shadow over a country, across an extended period of time, as Silvo Berlusconi. Palpable relief greeted the politician and media tycoon's resignation as Italian PM in November 2011, against a backdrop of severe doubt regarding his commitment to implementing economic reforms necessary to tackle the nation's debt crisis.
In central and eastern Europe political and economic distress is on the increase. Growth expectations are adjusted downwards in Poland, Hungary, the Czech Republic, Romania and Bulgaria where corruption, authoritarian tendencies, and outright political crises are rife.
Evidence seems to be mounting that global economic activity seems finally to be accelerating, maybe even creating a more classically rapid recovery, as opposed to the rather anaemic variety we have so far enjoyed.
Quietly and methodically, Germany has been recovering the bodies of hundreds of thousands of its soldiers who fell on its Eastern Front in the bloodie...
On the beaches, the picture is worse. Dimitri has run a popular local beach situated in one of the island's liveliest towns for over twenty years. This year, however, he has suffered under the tight grip of the government.
A realistic, integrated and equitable adjustment program needs to be put in place for the whole Eurozone. This program must put the interests of Eurozone's citizens ahead of those of its banks and politicians.
My guess is that USD bulls will ultimately be proved correct and make money, as yields continue to march higher - provided these traders haven't already been carted out on a stretcher, as volatility drags their positions below whatever career stop-loss level their employer cares to impose.
It is clear that the SNP's version of independence is not full independence and that could be detrimental to Scotland. The report supported by the Scottish government to retain the same welfare set-up with the UK has been the latest report to exemplify this point.
Last week I wrote that the US economy was in a sweet spot for the markets, with a Goldilocks, 'not too hot, not too cold' type recovery that won't cause the Fed to tighten, but will provide enough cheer to keep risk 'on'.
Why all the fuss about Europe when UKIP's rise isn't because of an over-bearing Europe, but because of globalisation? No one seems to have noticed that UKIP is not an isolated phenomenon. Right-wing, isolationist political parties are on the rise throughout Europe and elsewhere.
Edward Markus - founder, owner and chief analyst of ECR Research and ICC - is coauthor of this blog. Austerity vs Growth The focus in Europe is ...
'Not too hot, not too cold' just about perfectly sums up the state of the US economy right now. With first quarter growth of about 2.5% on an annualis...
What do Greece and an unemployed homeowner in Arizona have in common? They are both bankrupt with no hope of ever being able to pay back what they owe. As I wrote this, I realised it sounded as though I were making a joke (and a bad one at that). The reality is, unfortunately, not funny in any sense, but actually far more worrying.
Overall, however, given the combination of the ECB's unwillingness to address financial market fragmentation and the current austerity drive in most euro zone countries, we continue to expect a continuation of the economic crisis in the remainder of the year.