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As Angela Merkel begins new term, compromises could undo economic boom

The power-sharing agreement gives the Social Democrats more influence over policy than in their previous coalition, which ruled until elections last year

Jack Ewing | The New York Times 

The German economy could hardly be in better shape as Angela Merkel formally begins her fourth term as chancellor Wednesday. Unemployment is almost nonexistent, stock prices are at record highs, and there is almost no inflation. But the political compromise that allowed Ms. Merkel to remain in power could bring that boom to an end. She had to bend to demands from her party’s junior coalition partner, and agree to roll back deregulation that, since 2005, has unleashed the country’s economy. Now, with Europe’s economy gaining momentum after a prolonged slump, ...

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First Published: Wed, March 14 2018. 20:31 IST