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German Chancellor and head of the Christian Democratic Union Angela Merkel, centre, the chairman of the Social Democratic Party (SPD), Sigmar Gabriel, left, and the chairman of the Christian Social Union (CSU), Horst Seehofer, right, display copies of their signed coalition agreement in Berlin on Wed. Nov. 27, 2013.
German Chancellor and head of the Christian Democratic Union Angela Merkel, centre, the chairman of the Social Democratic Party (SPD), Sigmar Gabriel, left, and the chairman of the Christian Social Union (CSU), Horst Seehofer, right, display copies of their signed coalition agreement in Berlin on Wed. Nov. 27, 2013.
(Michael Sohn/AP)

German coalition proof of waning support for austerity

The world’s staunchest advocate of austerity is changing its tune.

German Chancellor Angela Merkel has agreed to a number of economic and social policy changes as part of a tentative deal reached between her conservative Christian Democratic Union and the centre-left Social Democrats to form a coalition government. The changes include an increase in stimulus spending, a lower age for pension eligibility and even the country’s first minimum wage.