The fallout from Europe's political earthquake

The European Parliament elections have shaken up political landscapes in countries across the EU, making its fragile consensus even harder to maintain and good policy making all but impossible.

If markets are anything to go by, last weekend’s elections to the European Parliament delivered a good outcome, promising stability and predictability for the continent. Across Europe, stock indices soared on Monday: up 3.4 per cent in Italy, up 2 percent in Greece. In Germany, it only seems a matter of time until the DAX, already at an all-time high, climbs above the 10,000-point mark.

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