Eurozone: Market focus turns to Italy - ANZ

Research Team at ANZ, suggests that the European electoral cycle gets underway in ten days with a referendum on constitutional reform in Italy on 4 December and the presidential election in Austria the same day.

Key Quotes

“Generalised dissatisfaction with the social and economic environment has been reflected in the victory for populist or anti-establishment policies and candidates this year in both the UK and US.”

“The difficulties facing the euro area economy imply that populist voices could prevail there too, in which case the market may begin to raise the political risk premium around the euro as general elections loom.”