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German Parties Agree on a New Government. Now What?

MIN READNov 24, 2021 | 16:45 GMT

FDP leader Christian Lindner, SPD leader Olaf Scholz and the co-leaders of Germany's Greens party Annalena Baerbock and Robert Habeck (left to right) pose during a press conference in Berlin after presenting their coalition agreement on Nov. 24, 2021.
FDP leader Christian Lindner, SPD leader Olaf Scholz and the co-leaders of Germany's Greens party Annalena Baerbock and Robert Habeck (left to right) pose during a press conference in Berlin after presenting their coalition agreement on Nov. 24, 2021.

(TOBIAS SCHWARZ/AFP via Getty Images)

Germany’s new government will push for a faster energy transition, an expansion of welfare spending and a deepening of EU integration, but could face internal dissent on fiscal policy that slows policymaking. Germany’s center-left Social Democratic Party (SPD), the environmentalist Greens and the pro-business Free Democratic Party (FDP) announced on Nov. 24 that they had reached a deal to form a government after almost two months of negotiations. Each party will ratify the agreement internally in the coming days, with the goal of holding a vote in the Bundestag on the week of Dec. 6 to appoint SPD leader Olaf Scholz as chancellor before the final European Council summit of the year, which will take place on Dec. 16-17. This will mark the end of Angela Merkel’s chancellorship after 16 years in office. ...

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