Germany's likely new government makes a risky gambit

Politics and GovernmentPolitics and Government

Thu, March 13, 2025

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Germany's likely new government makes a risky gambit

^{Published on 2025-03-13 07:41:10 - dw}

The CDU/CSU and SPD want to raise hundreds of billions of euros in debt. They are set to push the proposal through the outgoing Bundestag in special sessions. That is legal, but is it legitimate?

The article discusses the formation of Germany's new government, which is a coalition between the Social Democrats (SPD), the Greens, and the Free Democrats (FDP). This coalition, led by SPD's Olaf Scholz, has embarked on a risky strategy by proposing a significant increase in public spending, particularly in areas like climate protection, infrastructure, and welfare. This approach marks a departure from Germany's traditionally conservative fiscal policy, aiming to address urgent issues like climate change and social inequality. However, this shift could lead to tensions within the coalition, especially with the FDP, which traditionally advocates for fiscal restraint. The article highlights the potential economic risks, including higher borrowing and the challenge of managing Germany's debt brake, which limits structural deficits. The success of this coalition's ambitious plans will largely depend on economic growth and the ability to navigate these internal and economic challenges.

Read the Full DW Article at:
[ https://www.msn.com/en-xl/politics/government/germany-s-likely-new-government-makes-a-risky-gambit/ar-AA1AME1l ]

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