Barclays Says Merkel Likely To Remain In Power, But Watch For Surprises

German elections are likely to occur September, a Barclays report noted. While German Chancellor Angela Merkel and her Christian Democratic Union (CDU) is expected to remain a collation partner, the issue is how that partnership will take place. Markets appear complacent with a Merkel victory, which Barclays says is likely, but they warn that a surprise could result in a significant market negative due to complacency.

German politics becoming more fractured, with six parties for the first time since 1957 likely to end in Merkel win regardless
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