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Economics

Europe’s Best Hope Is a German Grand Coalition

Sept. 17 (Bloomberg) -- The elections in Germany this weekend won’t produce drastic change in the country’s euro-area policies, leaving the region vulnerable to risks that are widely underestimated.

One reason to hold this pessimistic view is that the two most plausible outcomes of the Sept. 22 vote would return Chancellor Angela Merkel to power; either her conservative bloc re-forms its existing coalition with the Free Democratic Party or she enters into a grand coalition with the main opposition Social Democrats. For Europe, there is reason to hope for the latter.