Germany in political uncertainty

The coalition supporting the German government could prove to be unstable and dissolve, if the three parties do not find common ground on the immigration issue. German chancellor Merkel, accepted a two week’s ultimatum yesterday, practically to strike a new EU deal on immigration. The ultimatum was given by CSU, one of the ruling parties and if there is no agreement in the next EU summit, Germany’s government could destabilize, with wider repercussions on EU’s asylum policy. Further developments on the before mentioned matter could create further volatility for the common currency.