The recent collapse of Germany's ruling coalition, formed by the Social Democrats, Free Democrats, and Greens, exposes deep ideological divides and the country's pressing economic challenges. Outgoing Chancellor Olaf Scholz's government grappled with issues like high labor costs and crumbling infrastructure, further exacerbated by a downturn in trade with China. The upcoming election is seen as a pivotal moment; while it presents opportunities for renewal and modernization, critics caution that high expectations may lead to disappointment given the structural problems facing the nation.
The three-way traffic-light coalition of Social Democrats (SPD), Free Democrats (FDP) and Greens ruling Germany since 2021 collapsed in November under the weight of its own ideological contradictions.
Whoever becomes chancellor will have to tackle an economy beset by high energy and labour costs, stifling bureaucracy, crumbling infrastructure and an economy that has shrunk for two consecutive years for the first time in decades.
Optimists say the vote could give Germany a vital shot at investment, modernisation and renewal. Pessimists say the problems are so structural and expectations so high that the middle-of-the-road coalition that will probably emerge is doomed to disappoint.
The slowdown with trade partner China has dealt a blow to German exports, a traditional strength, while the key car industry has been slow to develop attractive electric vehicles (EVs) and now faces the threat of US tariffs under Donald Trump.
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