German coalition pact aims to spur growth amid far‑right surge

The German government is confronting a surge in far‑right support. Chancellor Friedrich Merz and his centre‑left coalition partners have negotiated a new agreement. The pact calls for a series of economically‑focused measures to jump‑start growth. Implementing the plan will require politically painful compromises from both sides. Policymakers hope the concessions will blunt the appeal of hard‑line rivals. The agreement reflects a strategic shift toward more activist fiscal policy. Critics warn the compromises could strain the coalition’s cohesion. The next weeks will test the pact’s ability to deliver economic momentum and maintain political stability.