Germany Strikes Deal to Fix Economy & Tighten Borders
What Happened?
Germany’s two biggest parties finally agreed to work together after months of arguing. Their plan:
Boost the economy (tax cuts, help businesses) Control migration (stricter borders, slower citizenship) Stand up to Trump’s trade wars
(Source: Reuters coalition documents)
Why This Matters
Germany’s economy is struggling (2 years of shrinking)
Far-right party (AfD) is gaining power (now #1 in polls)
Businesses need help with high costs and weak sales
Key Changes Coming
Tax cuts for workers and companies
Cheaper energy prices
More support for electric cars
Tougher migration rules (fewer asylum approvals)
Trump Trouble
• Germany wants free trade with U.S. but fears tariffs
• Merz warned: “America’s decisions are causing chaos”
• Plans to increase military spending to protect economy
Big Challenges Ahead
Far-right AfD party now leads polls (25% support)
Economy could shrink again in 2024
Still supporting Ukraine (wants them in NATO)
Bottom Line (Based on Reuters Reports)
Germany’s new coalition deal tries to fix the economy and stop the rise of far-rights, but with Trump’s tariffs and weak growth, it won’t be easy.
Credit: Reuters