Skip to content
Search

Latest Stories

What We're Watching

German government on the ropes over budget clashes

German Chancellor Olaf Scholz reacts at a media briefing following his bilateral talks with Somali's President Hassan Sheikh Mohamud at the Chancellery in Berlin, Germany, November 5, 2024.

German Chancellor Olaf Scholz reacts at a media briefing following his bilateral talks with Somali's President Hassan Sheikh Mohamud at the Chancellery in Berlin, Germany, November 5, 2024.

REUTERS/Annegret Hilse

The government of Europe’s largest economy looked closer than ever to collapse on Tuesday as Germany’s ruling coalition remained unable to agree on a budgetary package proposal.

The coalition has always been a somewhat awkward, loveless marriage between Chancellor Olaf Scholz’s center-left Social Democrats, the left-wing ecologist Greens, and the center-right Free Democrats.


But the differences reached crisis levels last week when the Free Democrats proposed a budget that included spending cuts and deregulation plans that Scholz couldn’t agree with, alongside emissions target postponements that angered the Greens.

The bigger picture is that Germany’s economy is struggling badly, and the government is trying to find ways to boost growth without running afoul of strict fiscal stability rules. After the Free Democrats proposal was rejected, the party leader told his coalition partners to draft their own proposals if they liked.

The coalition is set to meet on Wednesday for a summit that could determine its future. If it collapses, Scholz would have to choose whether to try to govern with a minority government until the next scheduled elections in fall 2025 or call Germans to the polls early.

More For You

March 13, 2026, Tehran, Iran: ALI LARIJANI (C), Secretary of the Supreme National Security Council of Iran, participates in the Al-Quds (Jerusalem) Day rally, a commemoration in support of the Palestinian people on the last Friday of the Islamic holy month of Ramadan, in Tehran.

March 13, 2026, Tehran, Iran: ALI LARIJANI (C), Secretary of the Supreme National Security Council of Iran, participates in the Al-Quds (Jerusalem) Day rally, a commemoration in support of the Palestinian people on the last Friday of the Islamic holy month of Ramadan, in Tehran.

Supreme National Security Counci via ZUMA Press Wire
Israel says it has killed Iran’s security chief, as war drags onAli Larijani, who was head of the Islamic Republic’s influential security council and had effectively run the country since Supreme Leader Ali Khamenei’s death, was killed in a strike overnight, Israel has said. Tehran has not confirmed his death. If it is true, Larijani would be the [...]
​U.S. President Donald Trump walks as he arrives back at the White House in Washington, D.C., U.S., March 15, 2026.

U.S. President Donald Trump walks as he arrives back at the White House in Washington, D.C., U.S., March 15, 2026.

REUTERS/Aaron Schwartz
Trump demands global help to reopen the Strait of HormuzTwo weeks into his war against Iran, the US president is now calling on other countries to send forces to help secure the Strait of Hormuz. At the moment, Iran is allowing only a handful of (mostly China-bound) tankers to pass through without threat of mines, drones, or missile attacks. [...]
​Mexicans participate in an attempt to set a new Guinness World Record, where organisers aim to break the mark for the world's largest football (soccer) lesson as part of efforts to promote the country ahead of the 2026 FIFA World Cup, at Zocalo square in Mexico City, Mexico, March 15, 2026.

Mexicans participate in an attempt to set a new Guinness World Record, where organisers aim to break the mark for the world's largest football (soccer) lesson as part of efforts to promote the country ahead of the 2026 FIFA World Cup, at Zocalo square in Mexico City, Mexico, March 15, 2026.

REUTERS/Quetzalli Nicte-Ha
9,500: The number of people in Mexico City who participated in a soccer training session on Sunday, smashing a Guinness World Record as part of a campaign ahead of the World Cup in June. The event surpassed the previous record set in Seattle last year, when 1,038 people had a kickabout.2,000: The distance between Iran and Bangladesh, where [...]
​Russian President Vladimir Putin meets with journalists to comment on new U.S. sanctions targeting two major Russia's oil producers, as well as other international issues, in Moscow, Russia, October 23, 2025.

Russian President Vladimir Putin meets with journalists to comment on new U.S. sanctions targeting two major Russia's oil producers, as well as other international issues, in Moscow, Russia, October 23, 2025.

Sputnik/Alexander Shcherbak/Pool via REUTERS
Trump relaxes Russian oil sanctionsThe US has paused Russian oil sanctions in a bid to stabilize energy markets rocked by the war with Iran. Administration officials stress that it’s a “tailored” measure, applying only to oil already loaded onto tankers, but it’s still a gift to Russia, which has already been clocking an extra $150 million daily [...]