German business newspaper Handelsblatt published an article collating warning and caution notes by several veteran finance writers and economists that point towards an economic slump in forthcoming years due to the uncertain political situation in many countries and tense mood in stock markets. The group comprising of Dr Jens Muenchath, Christian Rickens and Daniel Schafer wrote that already there are many signs around us that point towards an impending financial crisis that is likely to hit the world which will test traditional alliances in the Western world and Asian economies. They said the biggest risk to world economy right now is political uncertainty in most locations around the world be it in Europe or America.
They pointed out to weakened political position of President Trump after the mid-term elections followed by UK’s Theresa May’s precarious position in Brexit talks and German Chancellor Angela May’s statement that she would not stand for re-election along with Italy’s financial crisis and unpredictable populist politicians are some of the risk factors behind uncertain climate. The group has warned that Democrats in the House will keep a close check on Trump and can also bring his current legislative agenda to a halt if they choose.
The recently elected government of Rome could start a financial crash if it does not adhere to regulations and warnings of the EU and that could set off a chain reaction across Europe as the country would be beyond help of bailouts. They warned that Britain PM’s precarious position within her Conservative party to maintain unity and negotiate a profitable exit deal that is acceptable by her party MP’s and passes without issues through the House of Commons added to existing uncertainty within Europe. Donald Trump’s unpredictable behavior and fiery dialogs have already increased uncertainty in the country and nations have already started defying his diktats as was visible when he imposed sanctions on Iran that was met with opposition from several European nations.