Last week, Angela Merkel announced that in December, she intends to resign as the head of the Christian Democratic Union (CDU). However, she noted that she plans to remain the head of the German government until the next parliamentary elections, which will be held in 2021.
At the moment, the question of a possible successor to Merkel as Chancellor remains open. Friedrich Merz, a former leader of the CDU / CSU faction in the Bundestag, and now chairman of the Supervisory Board of the German division of the investment company BlackRock Inc., is named as one of the candidates.
"The coming to power of Merz will mean the closer economic integration of the eurozone, which in turn will lead to an increase in the rate of the single European currency," analysts at the American bank Morgan Stanley said.
Friedrich Merz was one of those who signed an open letter last month in the Handelsblatt newspaper in support of European unemployment insurance, as well as the fiscal policy for the eurozone, which will contribute to its cohesion and sustainability. In particular, the authors of the letter called on the German authorities to cooperate with French President Emmanuel Macron in order to strengthen the European Monetary Union.
"If Germany takes a position closely echoing the policy of E. Macron, this will be a turning point for the single European currency, whose course has been under serious pressure in recent months, as economic growth in the eurozone has slowed down, and the Italian budget project has caused serious concerns among investors" - Representatives of Morgan Stanley noted.
The financial institution expects that by the end of next year, the EUR / USD pair will rise to the level of $ 1.32, a level that it has not reached since August 2014.
The material has been provided by InstaForex Company - www.instaforex.com