18.06.201822:16 Forex Analysis & Reviews: The government of Merkel under the threat of collapse

The government of Merkel is in danger of collapse.

German Chancellor A. Merkel received an ultimatum from the Union Party of the CSU. Toughen the policy of receiving migrants. The period is two weeks.

Merkel represents the block of the CDU-CSU in the government and this block is under threat of disintegration. The crack passed through the weakest point of Merkel's policy, the reception of migrant refugees in Germany.

The Merkel allies, the CSU party, stand firmly on the position of restricting the entry of migrants. The spokesman for CSU, German Interior Minister Seehofer, said Merkel or she would find a way to limit the influx of migrants or the Interior Ministry would act independently. The period is two weeks.

The question concerns an agreement adopted in the EU but not really working. The EU country has the right to deny entry to a migrant if he has refugee status in another EU country. It is clear that an attempt to rigorously carry out this measure will cause a new refugee crisis in those countries where they fall first.

It is not yet clear which way Merkel will choose. Talks in the EU or an attempt to persuade CSU to make concessions.

However, it is clear that the government of Merkel risks total collapse and new elections. And this is a strong blow to the European currency.