No-deal Brexit fears, political instability in Romania

No-deal Brexit fears, political instability in Romania

The growing likelihood of a no-deal Brexit is coming at a time when Central Europe is starting to be affected by weakness in the euro-zone and a more general slowdown in the global economy. The Czech Republic looks most vulnerable, although Hungary and Poland could probably weather a no-deal Brexit better. Meanwhile, developments this week that have left Romania’s government on the verge of collapse increase the risk that the country’s fragile fiscal position will worsen.
Liam Peach Emerging Markets Economist
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