Political paralysis, a big fall in the value of the euro and talk of a policy vacuum showed that Europe's bosses suffered a serious setback following the general election results in Germany.
Angela Merkel, the leader of the CDU and strongest advocate of neo-liberalism, was the biggest loser. Having led the polls for months and widely tipped to be the next chancellor, she was unable to secure an overall majority and is now desperately trying to cobble together some sort of workable coalition. Gerhard Schröder's SDP received its lowest vote for 15 years as people expressed their anger against high unemployment and economic stagnation. The political turmoil looks set to continue for months, leading to further instability in Europe's largest economy.