A domestic political crisis threatens further losses for Germany's auto, banking and energy industries as they deal with growing hostility from the outside world following the election of Donald Trump and trade tensions with China.
Germany is bracing for months of uncertainty after its ruling three-party coalition fell apart over a series of disputes, the latest over how to revive the country's flagging economy, Europe's largest.
The company's second-largest lender, Commerzbank, had been counting on Berlin to protect it from an unwanted takeover by an Italian rival, while the industry had hoped for a rebound in demand that could bolster the fortunes of carmaker Volkswagen and others.
The government is now effectively a caretaker administration ahead of new elections, limiting its ability to overhaul policy and leaving German companies on the brink of survival.
According to a report by the German economic institute IW, the 20 percent tariffs on European goods that Trump announced during his election campaign could shrink Germany's export-dependent economy by 1.5 percent in 2027 and 2028.
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