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
Make us preferred on Google

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

French President Macron shaking hand with Norway's Prime Minister of the Kingdom Jonas Gahr Støre
The President of the French Republic, Emmanuel Macron, receiving the Prime Minister of the Kingdom of Norway, Jonas Gahr Støre, at the Elysee Palace in Paris, France, on May 27, 2026.
Quentin de Groeve / Hans Lucas via Reuters Connect
France to give Norway nuclear protectionWhen the sun shines, we’ll shine together — but when it doesn’t, you’ll have the protection of France’s nuclear arsenal. That, to adapt the classic Rihanna record, was the message from French President Emmanuel Macron to Norwegian Prime Minister Jonas Gahr Støre at a bilateral meeting in Paris on Wednesday. [...]
Iranian President Pezeshkian and Acting Minister of Defense Brigadier General Ebn-e-Reza during a meeting in Tehran.

May 26, 2026, Tehran, Iran: Iranian President MASOUD PEZESHKIAN (L) and Iranian Acting Minister of Defense Brigadier General MAJID EBN-E-REZA (R) during a meeting in Tehran.

Iranian Presidency via ZUMA Press
US-Iran: Is a deal still possible? The merry-go-round of negotiations between the two countries continues. The latest began on Saturday, when US President Donald Trump said an agreement was “largely negotiated,” before Iran poured cold water on this. The US military then hit Iranian missile launchers and boats suspected of dropping mines in the [...]
Police use a water cannon during a rally to disperse supporters of Ozgur Ozel

Police use a water cannon during a rally to disperse supporters of Ozgur Ozel, the ousted chairman of the main opposition Republican People’s Party (CHP), while waiting for his arrival in Izmir, Turkey, May 26, 2026.

REUTERS/Berkcan Zengin
Turkey’s crisis of democracy deepensRiot police over the weekend raided the headquarters of Turkey’s main opposition party, the Republican People’s Party (CHP), following a court order to remove party leader Özgur Özel. There were subsequent demonstrations in Istanbul and Ankara against the move by the government of President Recep Tayyip Erdoğan, [...]
​Students and their supporters take part in a protest in Serbia

Students and their supporters take part in a protest demanding snap parliamentary elections, continuing an anti-corruption movement sparked by a deadly railway station collapse in Novi Sad in November 2024, in Belgrade, Serbia, May 10, 2026.

REUTERS/Djordje Kojadinovic
Students keep the pressure on ruling party in SerbiaStudent protesters will take to the streets in Serbia this weekend in the first major demonstrations this year against President Aleksandar Vučić. Students have become a significant political force in Serbia over the last two years: in 2025, then-Prime Minister Miloš Vučević resigned after [...]