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Olaf Scholz becomes German chancellor

Social Democrats, Greens and German liberals have reached an agreement on forming a new government, paving the way for Finance Minister Olaf Scholz to succeed Angela Merkel as home. leader of Europe’s largest economy.

The three sides will present their coalition agreement on Wednesday afternoon, the culmination of nearly two months of intense negotiations following national elections on September 26. narrowly won by the Social Democrats.

The election marked a turning point in German politics. With Mrs. Merkel relinquishing the stage after four terms as prime minister, her Christian Democrats have tumbled to their worst results ever and been forced to go head to head for the first time in 16 years. and only the third time since the second world war.

They will be succeeded by a “traffic light” coalition, named after the parties’ respective colors – red for the SPD, yellow for the Liberal Democratic Party (FDP) and green for the Party. Green. It will be the first such coalition at a national level in Germany’s history and is expected to put climate change at the top of the country’s agenda.

A statement from the FDP said the three sides’ chief negotiators would meet on Wednesday for the final round of talks and then announce their coalition agreement at 3 p.m. local time at a center. conference center in central Berlin. The new government will be sworn in by the House of Commons early next month.

The partners of the alliance are strange bed mates. The Greens debated a great investment motivation to fight climate change and upgrade Germany’s shabby infrastructure, while campaigning on promises to raise taxes and relax the country’s strict debt rules to pay for the increased spending.

However, the financially conservative FDP ruled out a tax increase and any changes to the debt brake, Germany’s constitutional restriction on new loans. It is widely expected that its leader Christian Lindner will be appointed as the country’s new finance minister.

The alliance agreement marks a huge victory for Scholz, one of Germany’s most experienced and beloved politicians. Former mayor of Hamburg, he also served as minister of labor under his authority Merkel and a senior official in the SPD when its leader Gerhard Schröder was prime minister.

Scholz became finance minister in 2018 and initially pursued the same fiscally prudent policies as his predecessor Wolfgang Schäuble. However, when the coronavirus pandemic hit, he opened the faucet, taking on a huge debt to help industry and business in what many consider to be Europe’s most generous emergency aid program.

He also played a key role in pushing through the EU recovery fund, which saw the bloc take on large amounts of debt for the first time to fund grants and grants. loans to European economies affected by the pandemic.

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