Why markets are more cautious about the next potential political pitfall
Donald Trump’s surprise victory in the US presidential election may serve as a warning sign to Europe that populism can happen on a large scale. In Europe, generally speaking, populism has so far been confined to smaller countries. But there are already signs of increasing populism country by country across Europe, and that’s something we think European politicians are going to have to deal with. While we’re not expecting these populist movements to sweep to power imminently in upcoming elections, we think the polls suggest a malaise among many citizens, and that means the so-called European political elite need to listen to voters.