Could frugal Germans plunge Europe into recession and trigger another market sell-off? We have been warning that major risks remain in Europe. Many local investors may think they are abstract concerns. But last week's ASX volatility highlighted how the risks in Europe can rock markets and send shockwaves down to Australia. There is an additional European risk developing that investors need to be aware of that could spill over into local markets: a growing and serious rift between Germany and the rest of Europe over which policies to pursue in response to the low growth and deflationary environment. Basically, Germany, which is forecast to have a balanced budget in 2015, is enforcing austerity on Europe despite weakening growth. Germany's tough stance creates division and risk, including potentially forcing Europe into a recession and could cause another market sell off. Read more (VIEW LINK)