The collapse of Germany’s governing coalition and President-elect Donald Trump’s imminent return to the White House are creating new risks for the European Union's biggest economy.

The collapse of Germany's ruling coalition is set to bring more economic pain in the months ahead and just a glimmer of hope for Europe's ailing economic giant if, and that is a big if, it can lead to a less fractious government and more coherent policies.

Following the collapse of Germany’s coalition government this week, Economy Minister Robert Habeck announced his return to X, saying social media platforms like Elon Musk’s shouldn’t be the domain of “loudmouths and populists.

A breakup of the divided and unpopular coalition well before elections set for next September could leave the country directionless at a critical time for Europe.

With both France and Germany led by minority governments, the continent’s key powers are likely to be consumed by domestic politics as challenges pile up.

Germany’s economy is sliding down a steep cliff, and Donald Trump’s reelection might just be the final push over the edge. See, with Trump back in the White House, Europe’s [former] economic powerhouse is under fire,