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Chancellor Merz's Welfare Cuts Spark Coalition Tensions

8/24/2025

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Story summary
  • German Chancellor Friedrich Merz proposed welfare reforms that may strain relations with coalition partner SPD.
  • He opposed tax increases for medium-sized companies and called for social welfare cuts due to rising costs.
  • SPD leaders emphasize the need to protect welfare benefits, showing resistance to significant cuts.
  • Merz's remarks seek to appeal to traditional CDU voters amid leadership challenges.