Far-Right Political Surges Threaten Stability in France and Germany

Key Intelligence

• ■Anticipation of the 2027 French election, where far-right parties may gain power, is already placing significant pressure on French assets.
• ■Germany's far-right AfD is gaining substantial electoral traction, nearing victory in some regions and posing a historic threat to the country's traditional political 'firewall'.
• ■Mainstream German politicians are struggling to counter the far-right's momentum, with some leaders perceived as ineffective or disengaged on the campaign trail.
• ■This trend signifies a growing challenge to the established political order and democratic norms in two of Europe's largest economies.