MERKEL’S ALMOST-BUT-NOT-QUITE-DECISIVE VICTORY IS BAD NEWS FOR THE EUROZONE, insights.som.yale.edu, September 2013
With Germany at the center of the Euro crisis, the country’s recent national election has the potential to affect what happens far beyond its borders. Professor David Bach, Yale SOM's senior associate dean (som.yale.edu/david-bach), teases out the implications of Angela Merkel’s big—but maybe not big enough—win.
Pretty much from the start of the Euro crisis, it has befuddled, annoyed, and increasingly angered Germany’s partners that Angela Merkel, the country’s chancellor, appeared to pay more attention to the sentiments of German voters than to the opinions of renowned economists, elder statesmen, and business leaders. Merkel’s crushing of her opponents in yesterday’s general election shows the political savvy of her strategy—and spells trouble for Europe and the global economy.