Slow economic growth in eurozone will cause election uncertainty in 2017

London

SLACK economic performance, stubbornly high unemployment and general discontent with income inequality and regulation almost guarantee European election uncertainty in 2017. This political insecurity could in turn dampen employment-creating direct investment, analysts predict.

European economic growth is projected to remain subdued, said the Organisation for Economic Co-operation and Development (OECD). "Despite supportive monetary conditions, investment weakness will persist, reflecting low demand, banking sector fragilities and uncertainties about European integration."

Businesses and the markets will increasingly focus their attention on the elections, contends Douglas McWilliams, president of the Centre for Economics and Business Research (CEBR). First on the pipeline will be the Netherlands in March. Mr McWilliams predicts that Gert Wilders,…