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German Chancellor Angela Merkel (front C) poses for pictures with representatives of industry and labour union organisations at the German government guesthouse Meseberg Palace in Meseberg some 60 km (37 miles) north of Berlin, July 4, 2013. Pictured behind Merkel are (L-R): Chancellery State Minister Ronald Pofalla, Head of Confederation of German Employers' Association (BDA) Dieter Hundt, President of the Federation of German Industry (BDI) Ulrich Grillo and Interior Minister Hans-Peter Friedrich.
German Chancellor Angela Merkel (front C) poses for pictures with representatives of industry and labour union organisations at the German government guesthouse Meseberg Palace in Meseberg some 60 km (37 miles) north of Berlin, July 4, 2013. Pictured behind Merkel are (L-R): Chancellery State Minister Ronald Pofalla, Head of Confederation of German Employers' Association (BDA) Dieter Hundt, President of the Federation of German Industry (BDI) Ulrich Grillo and Interior Minister Hans-Peter Friedrich.
(Thomas Peter/Reuters)

FINANCIAL TIMES

With election looming, Germany steers euro zone

Lex is a premium daily commentary service from the Financial Times. It helps readers make better investment decisions by highlighting key emerging risks and opportunities.

Nothing – especially not bad things – can happen in the euro zone so long as Germany is in election mode. That is the happy news for officials meeting in Brussels on Monday to decide whether to pay out another €8-billion ($10.9-billion) to Greece. This time last year, the euro zone was shaken by political and market events that sent bond yields soaring and sparked the “whatever it takes to save the euro” stance from European Central Bank president Mario Draghi. Yet political crises in Portugal and Greece have sent barely a ripple through the wider euro zone. Germany’s election on September 22 is imposing a great deal of stability. The question is what happens after the vote.