FxWirePro: DAX suffers selloffs as Merkel handed two week ultimatum by coalition partners to resolve migrant crisis at EU level

German benchmark stock index DAX is suffering intense selloffs as Horst Seehofer, the current Interior Minister and the leader of German Chancellor Angela Merkel’s Christian Democratic Union’s (CDU) main coalition partner Christian Social Union (CSU) handed Chancellor Merkel an ultimatum to resolve the migrant crisis at the European level before a two-day leaders’ summit beginning 28th June. As Mrs. Merkel warned Mr. Seehofer suggesting that she remain in charge of the government policies, the defiant interior minister said that if a deal could not be agreed upon by the European countries, he would order German border force to unilaterally secure the border and prevent migrants from entering Germany.

Since 2015, the migrant crisis, where millions of people from the war-torn region of the Middle East and Africa have arrived in Europe to escape violence and economic stagnation has brought major changes in European politics. The massive influx of arrivals has led to a rise in crime and disrupted the very social fabric of Europe. Germany alone has seen 1.6 million refugees arriving in the country since 2015. Thanks to the crisis, European right-wing parties have been gaining grounds since 2015. In Italy, and Slovakia right-wing parties have formed the government. Hungary, Czech Republic, and Poland has formed a coalition of their own and has refused to give in to German demands of distributing the taken refugees across Europe. Last year’s German election saw Merkel’s popularity dropping lowest since she assumed power as the Chancellor.

German benchmark responded to the development by declining sharply. After reaching 13180 area last week, Ger30 (CFD of DAX) decline to 12667 as of today. German benchmark DAX is down 1.2 percent today and trading around 12680 area.