Germany prepares for chancellor election as economic concerns linger

cnbc.com

Germany is set to elect a new chancellor, with Friedrich Merz of the Christian Democratic Union leading the race. Critics have targeted current Chancellor Olaf Scholz's economic policies, but analysts doubt Merz's government would significantly improve the economy. The CDU plans to implement tax cuts and reduce bureaucracy, but experts say their proposals lack detail on boosting infrastructure and education. Germany's economy has faced declines, with GDP shrinking in 2023 and 2024, raising concerns about achieving growth targets. After the election, the CDU will likely need to form a coalition, possibly with the Social Democratic Party or the Green Party. Significant differences in economic policies may complicate coalition negotiations, but the CDU is expected to maintain its main proposals in any agreement.


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