Political turmoil and dysfunction in the European Union’s two largest economies have come at the worst possible time for Europe.

With Donald Trump about to regain the US presidency and ready to impose tariffs of 10 to 20 per cent on America’s trading partners and stop the war in Ukraine, the collapses of the French government and the ruling German coalition have left the two most powerful states within the European Union rudderless.

Worsening their plight has been the combination of the pandemic and the Ukraine war.

Emmanuel Macron (left) and Olaf Scholz: Their countries’ political crises couldn’t come at a worse time.Credit: Getty

The pandemic blew holes in their budgets. The war has inflated energy prices, forced increased defence spending and spending on military and humanitarian aid to Ukraine, and has left both economies severely weakened.

President Emmanuel Macron’s government fell on Wednesday after an attempt by his prime minister of less than three months, Michel Barnier, to circumvent the legislature and effect major cuts to spending. That triggered a vote of no confidence in the government – the first in more than 60 years – which he lost when both the far-right and far-left supported it.

Effectively, France has no budget for 2025, although, under French law, it can roll forward the 2024 budget. Macron could propose a new prime minister but would risk a repeat of this week’s events. There can be no dissolution of the National Assembly or early election until next July, a year after the last poll.

The collapses of the French government and the ruling German coalition have left the two most powerful states within the European Union rudderless.

With France’s........

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