2024 was a difficult year for the Eurozone, as its largest economies, Germany and France, faced political and economic turmoil, meaning that neither has a budget for 2025.

Economists say the trajectory for both countries is worrying, warning that a lack of growth, fiscal imbalances and political intransigence could lead to decline and a loss of prestige for Europe as a whole.

“The situation today is different from the previous (debt) crisis in the sense that Europe’s most acute problems are no longer concentrated in smaller economies like Greece. Instead, it is Europe’s two most important economies that are being tested,” Neil Shering, chief economist at Capital Economics, said in a December analysis.

“Europe will face continued decline without fundamental reforms at its core,” Shering said, noting that unless this is done, “it is hard to avoid the conclusion that Europe’s future is one of very low growth, continued concerns about fiscal sustainability and a declining perception of its place in a world increasingly characterised by a superpower competition between the US and China.”

As it stands, neither France nor Germany has a budget for 2025, amid political infighting that ultimately brought down their governments.