Paris experiences another turmoil following the collapse of its government, with an assessment of the repercussions

In recent times, France has been grappling with political instability, which could have far-reaching consequences for the Eurozone and Europe as a whole. The country currently holds the highest debt-to-GDP ratio in the eurozone, surpassing Greece and Italy, and this has raised concerns among European institutions.

The European Commission has initiated an infringement procedure due to France's excessive new debt, a sign of the Commission's growing unease about the country's budget situation. This political paralysis, resulting from a potential change of government, could delay budget plans and push foreign policy, including Ukraine aid, into the background.

France has been a significant contributor to Ukraine's aid efforts, having allocated around 7.6 billion euros in military, financial, and humanitarian aid since 2022 until the end of June 2025, equating to approximately 0.3% of its GDP. However, the political unrest in France could complicate cooperation on common issues in the short term, potentially impacting the flow of aid to Ukraine.

Germany, on the other hand, is now considered the most important partner of Ukraine, both in terms of weapons deliveries and financial support, as the USA continues to withdraw from Ukraine support. A government collapse in Germany would likely worsen economic instability and delay critical reforms, particularly in social insurance and fiscal policy areas, which are already under severe pressure and requiring urgent reform.

The risk of delay and weakening of austerity efforts could increase the interest burden of new government bonds and negatively impact the French economy. This could lead to renewed loss of confidence in the Eurozone, as the further weakening of French economic stability could have ripple effects across the region.

However, it's important to note that the fall of the government is unlikely to have a significant impact on relations with Berlin. Nevertheless, the political instability in France could strain cooperation on common issues, at least in the short term.

In an unexpected twist, with the further weakening of Macron, more responsibility for Europe could fall on Federal Chancellor Friedrich Merz. As the most important partner of Ukraine and a key player in the Eurozone, Merz's leadership could play a crucial role in navigating these challenging times for Europe and Ukraine.

The draft budget presented by Bayrou aims to tackle France's rising public debt, offering a glimmer of hope for addressing the country's financial woes. However, the success of these efforts will depend on the stability of the French government and its ability to implement the necessary reforms.

As the situation unfolds, it is clear that the political instability in France has the potential to significantly impact the Eurozone and Europe. The coming months will be crucial in determining how these challenges are addressed and whether the region can maintain its economic and political stability.

Paris experiences another turmoil following the collapse of its government, with an assessment of the repercussions