Israel's political crisis that flared up earlier this week has since calmed down after PM Netanyahu paused the government's controversial judicial reforms. While tensions may flare up again and Israel's financial markets will probably remain volatile, it looks like a compromise may eventually be reached. Meanwhile, Bulgaria will hold its fifth parliamentary elections in two years this Sunday and the latest polls suggest that it will be difficult to form a stable majority yet again. A continuation of political instability could limit the ability to pass key reforms, hamper investment and weigh on Bulgaria's growth potential.
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