Germany's September national elections are rapidly approaching, and there are signs that it could start to get interesting.
Alternative für Deutschland (AfD) – a new political party running on a platform advocating dissolution of the euro – is already making impressive gains in the polls, and German Chancellor Angela Merkel's incumbent government is losing support.
In a new poll released today, support for Merkel's center-right coalition fell to 42%, meaning they are without a majority heading into September. Another poll showed their support slipping to 37% from 40%.
Meanwhile, the German economy may be coming into a bout of weakness, as the latest manufacturing data suggest (the ECB went as far as to suggest that part of the rationale behind last week's rate cut was the spread of economic weakness to the "core" euro zone).