Media said the economies of Germany and France shrink due to political instability

The economies of Germany and France continue to shrink due to declining confidence in the governments of the countries. This was reported by Bloomberg news agency on January 30.

"Europe's two leading economies faced an economic downturn at the end of last year, as the collapse of their governments undermined the confidence of businesses and consumers," - said in the material.

Germany's GDP fell 0.2 percent in the fourth quarter of 2024 from the previous three months, the agency said. France's GDP decreased by 0.1%.

It is noted that "disappointing for Germany data" came less than a month before the extraordinary elections in the country. At the same time, many analysts are skeptical, despite the hopes of some experts that after the elections the German economy "will be able to pull out".

In France, the main problem is the budget crisis. Negotiations on the 2025 budget are due to conclude next week.

"There are a few bright spots in Europe - namely Spain, which reported GDP growth of 0.6% and remains the region's leader. Lithuania also recorded strong growth of 0.9%," the agency notes.

Eternal stagnation: German economy falls for the second year in a row

A return to sustainable growth is unlikely without renewed ties with Russia

On the eve in Germany, several hundred entrepreneurs gathered at the Brandenburg Gate in Berlin, opposing the economic policy of the country's authorities and the European Union. The general demands of the protesters include the reduction of bureaucratic requirements, tax burden, as well as energy costs.

On the same day, Yevgenia Pimenova, a historian and German political scientist, told Izvestia that the rallies of entrepreneurs in Berlin show the German government the need to address the cause of the country's financial crisis and not just support businesses with money.

Commenting on this, Pimenova noted that the German economy is indeed in a difficult state. According to her, the people who came out to the rally seek to convey their problems to those politicians who will soon - after the February elections - form a new German government.

Before that, on December 28, 2024, former member of the European Parliament, French politician Hervé Juvene told Izvestia that one of the reasons for the economic crisis in Germany is the cessation of cheap oil and gas supplies from Russia. According to the politician, there is no peace in Europe, and "the prospect of prosperity is melting away." The European Union's economic problems will grow, Juvene suggests.