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Germany's Economy Struggles Amid Rising Unemployment and Coalition Woes

11/22/2025

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Story summary
  • Germany's economy faces significant challenges under Chancellor Friedrich Merz after six months in office.
  • Analysts forecast 0.2% growth for this year.
  • Unemployment has risen to nearly three million, the highest in 14 years.
  • Merz's coalition struggles with infighting and low poll ratings, with CDU/CSU support at 25%.
  • The €500 billion infrastructure fund faces skepticism about its effectiveness and reform capacity amid coalition fractures.