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Political crises in France and Germany spell more trouble for Europe's ailing economy - analysis

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  Government collapses in Berlin and now Paris will hamper efforts to address Europe's burgeoning deficits and spluttering competitiveness. View on euronews

The article discusses the political instability in France and Germany, which is exacerbating economic challenges across Europe. In France, President Emmanuel Macron's decision to call for a snap election following a significant defeat in the European Parliament elections has led to a political vacuum, with the far-right National Rally gaining ground. This uncertainty has already impacted financial markets, with French bond yields rising and the euro weakening. Meanwhile, in Germany, the ruling coalition led by Chancellor Olaf Scholz is facing internal discord, particularly over budget issues, which has led to a lack of decisive economic policy-making. This political turmoil in two of the EU's largest economies is contributing to a broader sense of economic malaise, with fears that the lack of stable governance could further hinder Europe's economic recovery, potentially leading to increased borrowing costs and reduced investor confidence.

Read the Full MSN Article at:
[ https://www.msn.com/en-xl/politics/government/political-crises-in-france-and-germany-spell-more-trouble-for-europe-s-ailing-economy-analysis/ar-AA1vk1wH ]