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Germany's likely new government makes a risky gambit

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 ]