Germany's ruling coalition faces critical divisions as budget talks stall

cnbc.com

Germany's ruling coalition is facing a critical situation, with increasing divisions among its three parties: the Social Democratic Party (SPD), the Greens, and the Free Democratic Party (FDP). Speculation about a potential break-up has intensified, with coalition representatives holding urgent talks. Recent tensions include Finance Minister Christian Lindner's proposal for economic revival, which contradicts key positions of the SPD and Greens. The coalition is also grappling with a contentious budget for 2025, which remains unresolved amid differing economic visions. The budget must be finalized by mid-November, but disagreements over funding and priorities could lead to further instability. Analysts suggest that failure to reach consensus may result in the collapse of the coalition.


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