Immigration has remained very high up the political agenda this week, and while EU leaders reached a compromise on Monday, this is not a closed issue and tensions may well flare up again. Meanwhile, the news on the German economy has been much better this week, with a very strong rise in industrial production in May. Overall, the data supported our view that the euro-zone’s largest economy will perform fairly well now that the drags from bad weather and strikes are out of the way.
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