Europe: Bavaria – through the EU looking glass
Bavaria goes to the polls next on Sunday (October 14th). Regional elections don’t usually matter much, but this one is significant. The incumbent CSU has fallen from grace, the start of a broad realignment in German politics. This highlights a deeper malaise in Europe. Since the crises, support for Europe’s established political centre has collapsed. Orthodoxy is being challenged by populists on both right and left. The problem is most acute in Italy. We are short Italian BTPs and out of the euro.