26 May 2014
Anti-euro parties advance in elections – Danske Bank
FXStreet (Edinburgh) - Senior Analyst at Danske Bank Flemming Nielsen remarks the good performance of the anti-euro parties in the recent EU-Parliament elections.
Key Quotes
“As expected, the EU-parliament election yesterday was a major victory for anti-EU parties”.
“This was particularly the case in France, the UK and Greece where National Front, Ukip and Syrezia became the largest parties. That said, the outcome was not as bad as feared for established parties”.
“In Italy Matteo Renzi’s governing centre-left Democrats became the largest party and appear to have beaten the anti-establishment and anti-EU Five Star Movement. This might help to give the Renzi government the electoral legitimacy it lacked after taking office in February and has reduced the likelihood of an early election in Italy”.
“In Spain the ruling Popular Party also became the largest party, albeit the established parties lost ground to anti-austerity left-wing parties and separatist Catalan parties.
“Despite the electoral success the anti-EU parties will remain a clear minority in the new EU-parliament and will not be able to block legislation. Nonetheless, it will make legislation in the EU-parliament a bit more difficult, as approval will be dependent on some support from both established left and right parties”.
“In addition, the electoral success for anti-EU parties underscores that, although the economic and financial crisis in the euro-area is waning, there is still a risk that it could turn into a political crisis at the national level. The anti-EU vote also underscores that there remains substantial pressure for less austerity”.
Key Quotes
“As expected, the EU-parliament election yesterday was a major victory for anti-EU parties”.
“This was particularly the case in France, the UK and Greece where National Front, Ukip and Syrezia became the largest parties. That said, the outcome was not as bad as feared for established parties”.
“In Italy Matteo Renzi’s governing centre-left Democrats became the largest party and appear to have beaten the anti-establishment and anti-EU Five Star Movement. This might help to give the Renzi government the electoral legitimacy it lacked after taking office in February and has reduced the likelihood of an early election in Italy”.
“In Spain the ruling Popular Party also became the largest party, albeit the established parties lost ground to anti-austerity left-wing parties and separatist Catalan parties.
“Despite the electoral success the anti-EU parties will remain a clear minority in the new EU-parliament and will not be able to block legislation. Nonetheless, it will make legislation in the EU-parliament a bit more difficult, as approval will be dependent on some support from both established left and right parties”.
“In addition, the electoral success for anti-EU parties underscores that, although the economic and financial crisis in the euro-area is waning, there is still a risk that it could turn into a political crisis at the national level. The anti-EU vote also underscores that there remains substantial pressure for less austerity”.