German Coalition Faces Budget Crisis

German Chancellor Olaf Scholz's coalition government is facing a critical juncture as tensions rise over budget negotiations among the three parties involved. Scholz's Social Democrats, the Greens, and the Free Democrats (FDP) are at odds over economic strategies, with Finance Minister Christian Lindner advocating for tax cuts and deregulation, which are resisted by his partners who favor targeted government spending. A key meeting is scheduled for this week to address these disputes, with Lindner's ultimatum potentially threatening the coalition's stability. The outcome of the U.S. elections could further influence Scholz's ability to maintain government stability amidst these challenges. Additionally, Germany is grappling with economic pressures, including a struggling automotive sector and rising competition from abroad. The situation remains fluid, with the possibility of snap elections looming if the coalition collapses.