European and U.S. stock prices plunged sharply on Monday following political uncertainty in euro zone countries.

In Germany, stock prices fell three-point-four percent from last Friday, while prices in France slid two-point-eight percent and one-point-eight percent in Britain.

Key indices at the New York Stock Exchange also fell around one percent.

Prices fell as a leftist government that is critical of retrenchment policies is likely to take power in France and as the prime minister of the Netherlands stepped down following a crisis over budget cuts.