European Parliament Elections
A growing wave of populism enters the EU elections with anti-EU sentiment at an all time high. Right wing parties intent of “taking back control” in a post globalisation era are campaigning to break up the existing structures of the EU and even local party systems. Radical shakeups of political systems should be welcome in my opinion and can give birth to a brighter future but the undercurrents of intolerance, racism and nationalism that unfortunately tend to run with these parties cannot be a sustainable way to live and trade. The uncertainty flowing into these elections has investors across the EU worried as any upturn in authority will at best have short term negative economic consequences. Capital is likely to flow out into more stable economies leaving the EU project under threat.
Taking part in the EU elections initially had Brexiteers in dismay though a number now appear to be revelling in the potential mess and fallout. Propaganda from Tommy Robinson and Nigel Farage involve sending EU a message they won’t forget, so instead of being co-operative there appears a simple desire to be as destructive as possible. Any backlash from UK MEP’s behaviour in the EU is likely to make any form of Brexit more tedious for any Prime Minister which in turn will affect sterling and our economy no doubt.
The votes this month carry a significant risk/offer of EU referendums in more countries. The rising nationalist parties of Hungary, Estonia and Italy jump immediately to mind. Italy is the blocs 3rd largest economy so a departure would not be welcome and could have a serious destabilisation effect.
We will be watching the markets and gold price following the vote and will update this page in due course with some data and graphs.