German Chancellor Merz says far-right rise will have ‘consequences’

Merz's vague warning signals a potential shift in Germany's political posture, but without concrete actions, markets have little to price in. The significance lies in the uncertainty: if 'consequences' translate into policy changes on migration or security, it could affect fiscal priorities or EU dynamics. For now, the open question is whether this rhetoric hardens into legislative moves, which would be the real market signal. Watch for any follow-up specificity from the government.