Challenges Facing Germany's Traffic Light Coalition

Germany's Traffic Light Coalition is grappling with significant economic challenges as major corporations like Intel and Volkswagen announce job cuts. The urgency of transformation has been overlooked, prompting warnings from the BDI about escalating costs.

The economy demands reduced electricity prices, particularly for industry, while the government plans substantial investments in green energy initiatives. Critics highlight a fragmented energy policy and financial strategies that favor higher earners, raising concerns about fairness.

Additionally, legislative efforts, such as the planned Tariftreuegesetz, face obstacles, further complicating the coalition's efforts. As the federal budget for 2025 looms at 488 billion euros, the coalition must navigate these pressing issues to secure economic stability.