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Trump's renewed presidency poses significant challenges for Germany, particularly through protectionist trade policies and demands for increased security spending. Experts predict that these measures could lead to a loss of up to 1.4 percentage points in economic growth and jeopardize between 195,000 and 235,000 jobs by 2027. With the U.S. as Germany's largest trading partner, higher tariffs could severely impact the already struggling export industry, intensifying economic uncertainties.
The German coalition government is facing a potential collapse over escalating disputes regarding economic policy, with key figures like SPD leader Saskia Esken advocating for significant investments while Finance Minister Christian Lindner opposes undermining the debt brake. Tensions have intensified as leaders argue across continents, with Lindner criticizing proposals from Economics Minister Habeck, leading to a chaotic political landscape described as a "coalition Mikado." As the economy weakens, the opposition senses an opportunity to challenge the governing coalition.
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