FX Guys

German governing coalition fails to settle disputes after 20 hours of talks

By Andreas Rinke and Sarah Marsh

BERLIN (Reuters) – The three parties in Germany’s governing coalition on Monday ended 20 hours of talks without resolving disputes over spending and other issues although Chancellor Olaf Scholz said they achieved “very good progress.”

Amid worries about policy gridlock in Europe’s largest economy, Germany’s first coalition at the federal level, which joins Scholz’s Social Democrats, the Greens and pro-business Free Democrats (FDP), has been arguing for weeks or months over various policy initiatives.

The lack of progress and increasing friction between the FDP and the Greens have raised questions about whether Scholz’s government will be able to push through its ambitious agenda to modernize the economy.

The coalition talks started at 6:30 p.m. on Sunday and lasted for 20 hours, until a sleep-deprived Scholz and several cabinet members had to jet to the Netherlands for long-planned…
Read More