Paris, Berlin mired in political uncertainty
Trump, China, Ukraine among imminent challenges
Companies say lack of clarity shrouds business

Dec 9 Reuters France and Germany39;s political crises are a setback for efforts to modernise Europe39;s struggling economy and are already making it harder for companies to take the investment decisions they need to compete globally.

Government collapses in Germany and France  the big two economies that for decades have powered the European Union come just as the region must navigate the return of Donald Trump to the White House and mounting trade tensions with China.

From French cognacmakers facing Chinese duties to German component manufacturers awaiting clarity on Europe39;s industrial strategy for electric vehicles, the timing could not be worse.

Across the 27nation bloc, few disagree that the region39;s economies must be overhauled if they are to generate the wealth needed to sustain an ageing population of 450 million. But more than ever, the question is whether its politicians can deliver.

The French crisis, together with the German one, must not slow down the implementation of the economic reforms, Enrico Letta, author of a 147page, EUcommissioned report this year on the weaknesses of the region39;s economy, told Reuters.

The fall of President Emmanuel Macron39;s government on Wednesday just weeks after the implosion of the German coalition is a potential meteorite for financial stability in a region struggling…