Germany and France Face Economic Woes and Political Uncertainty

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Germany and France Face Economic Woes and Political Uncertainty
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As Germany and France grapple with domestic political turmoil and economic downturns, analysts warn of a potential leadership vacuum and further fragmentation within the European Union.

With Germany and France fighting political and economic woes on the domestic front, analysts say there is danger of a leadership vacuum in the region, and more fragmentation.

Business activity in the manufacturing and services industries in both countries — Europe's largest and second-largest economies, respectively — declined further in September, data showed Monday. A defeat to the AfD could have had major repercussions for Germany's leadership given the sharp rise of the far-right's popularity among parts of the German electorate,

"The German economy continues to struggle for momentum, fuelling concern that the headwinds are structural rather than just cyclical," J.P. Morgan euro area economist Greg Fuzesi said in a note Friday, entitled "Checking in on the German patient."

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