Toxic Politics and Fading Stimulus: East Europe's 2019 Risks

Traders in eastern Europe face a toxic landscape in 2019. In the twilight of the euro area’s monetary-stimulus program, populism is spreading and growth is slowing.

Cracks in the European Union look set to deepen as member states go to the polls in May, potentially inflaming the debate on investment funds in the bloc’s new budget. After a corruption scandal erupted at Poland’s financial regulator this year, the ruling Law & Justice party’s majority faces a test in November parliamentary elections. Geopolitics still dominate Russia’s markets, and the threat that a fresh round of U.S. sanctions may be deployed against the region’s largest economy hasn’t gone away.