German Political Risk

  • The rise of the AfD (the right-wing populist party) in German polls has been remarkable.
  • With elections looming in October 2025, this political risk will soon be on investor’s horizons.
  • In this context, this interview with Wolfgang Munchau, former co-editor of FT Deutschland, is a must-read to understand the woes of Europe’s largest economy and how these reflect in politics.
  • Interestingly he highlights another possible surprise on the left political spectrum – “there may soon be a party on the Left led by Sahra Wagenknecht, a very sort of maverick politician, who has left or who is on the verge of leaving the Left Party, who may be forming a new party of the Left. And that party was also on opinion polls at potentially 20% of the electorate.
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