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.

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.