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Marsh on Monday: Merkel’s election humiliation could help U.K. in Brexit talks

At the G-20 summit in China at the weekend, President Barack Obama had a ringside seat at the latest reshuffling of European political power structures. Preparing for a graceful exit himself in a few months, Obama has had the chance to watch unfold — thanks to a regional German election taking place 5,600 miles — the gradual unraveling of Europe’s pivotal leader.

The anti-immigration, anti-euro Alternative for Germany (AfD) on Sunday forced German Chancellor Merkel’s ruling center-right Christian Democratic Union into third place in elections in the small and relatively impoverished eastern state of Mecklenburg Vorpommern. Merkel’s ebbing power further complicates the European Central Bank’s growth policies.

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