European elections: all change for equity investors?

The upcoming European elections could accelerate a shift in the European Union’s (EU’s) policy priorities, with potentially meaningful implications for European equities. Below, I explore some of the key themes I am monitoring. 

Political pendulum swinging to the right

According to current polls, the far right may be the big winner in the elections for the European Parliament on 6 – 9 June. While I think centrists will still be able to maintain an overall majority, the balance of power is likely to tilt from the centre left to the centre right, with the European People’s Party (EPP) poised to become the most influential parliamentary group. In most cases, I expect the EPP to continue voting with the centre left but it could also build a majority with the far right, which would give the EPP significant leverage when it comes to issues such as immigration, climate and further EU integration. 

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