Greens' Stand May Derail Germany's Borrowing Plans

Germany's Greens may refuse to support Chancellor Friedrich Merz's plan for increased state borrowing, potentially impacting economic growth strategies. Despite their resistance, Merz and his allies remain hopeful, viewing it as a tactical move. Negotiations are ongoing, focusing on climate measures and fund allocation to states.

Germany's Green party is showing resistance towards likely next chancellor Friedrich Merz's proposal to significantly increase state borrowing, presenting a potential challenge to reviving economic growth.

Sources from Merz's camp suggest the Greens' opposition may be a strategic bargaining tactic, as they seek concessions and attention to climate initiatives.

With coalition talks ongoing, both parties continue to negotiate terms, hoping for a resolution that aligns with Germany's economic and environmental goals.

(With inputs from agencies.)