Tue 19 Jun 2018 / Europe
Euro distraction from Merkel weakness
Angela Merkel's political weakness in Berlin is an unpleasant distraction as euro area countries prepare to announce measures to reinforce economic and monetary union at the 28-29 June Brussels summit. The German chancellor's preparations for setting up a European Monetary Fund are being overshadowed by a dispute over asylum rules both in Germany and with European partners. Potentially fatal squabbling in Merkel's fractious coalition could damage euro confidence and widen spreads between Italian and German government bonds.