John Redwood: Markets sanguine on euro political risk

Earlier this year markets were stalked by talk of political risk in the eurozone and the euro itself was on trial in the Dutch and French elections. In common with many in the markets, we thought the euro would win and European shares would rise to reflect the quickening pace of economic recovery in the zone - and so it came to pass. Today, markets remain sanguine about European political risks and assured the economic recovery is now well set. In particular, ahead of the weekend's polls in Germany, a majority of  investors look forward to Angela Merkel winning her fourth election in a r...