David Zahn: Brexit threatens to shift EU's balance of power

An underappreciated story

clock • 4 min read

For Europe's bond investors, says David Zahn, 2018 should be the year economic fundamentals reassert their worth yet many underappreciate the long-term implications of the region's biggest political uncertainty

After a year in which politics dominated the European investment agenda, 2018 should bring more focus on economic fundamentals. Looking further out, however, we see politics returning to the agenda as the full implications of the UK's departure from the European Union (EU) reveal themselves. In particular, we see Brexit having a significant impact on the balance of power in the trading bloc and on the way it operates. The election of Emmanuel Macron as French president and the re-election of Angela Merkel as German chancellor - both proponents of further European integration - suggests t...

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