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Berlin incident will create pressure on Merkel

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Increased attention for possible short positions on European indices and still remain short on the EUR.

After the incident last night, when a truck slammed into the Christmas market in Berlin, killing 12 and wounding 40 people, there will be political dimensions.

After the incident eyes are directed at Chancellor Angela Merkel, which allowed taking more than 1 million refugees.

The incident happened shortly before the parliamentary elections in Germany in 2017. This will give the anti-immigrant party "Alternative for Germany" to gain momentum and create obstacles to the re-election of Merkel.

Probably debates about the negative impact of allowing refugees will lead to instability in the German political class, which in turn would be negative for the German and European economies.


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