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German coalition tensions will intensify this year

Tuesday, February 14, 2023

Significance

The disappointing result for the parties reflects national polling trends: all parties suffered a decline in support throughout 2022. Economic challenges and important upcoming state elections risk deepening internal divisions and weakenening the scope for policy compromise.

Impacts

  • The insular nature of German foreign policy will persist, which will anger EU allies and may harm Germany’s influence over EU members.
  • Despite Berlin’s hardening political stance on Beijing, German trade and investment with China will continue to flourish.
  • The cost-of-living crisis will continue to boost support for the far-right Alternative for Germany.

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