## Germany: New government has coalition agreement – commentary > December 7, 2021. Germany has a new governing coalition. The Social Democrats (SPD), the Greens and the Free Democrats (FDP) have agreed on a coalition agreement. The new government will be led by SPD leader Olaf Scholz. The coalition agreement is a compromise between the three parties. The SPD has pushed through its plans for higher taxes on the wealthy and investments in climate protection. The Greens have achieved their goals of a faster expansion of renewable energies and a speed limit on motorways. The FDP has ensured that there will be no tax increases for companies and that the debt brake will be adhered to. > The new government faces major challenges. It must tackle the corona pandemic, climate change and the economic crisis. In addition, it must deal with the consequences of the Afghanistan withdrawal and the tensions with Russia and China. Commentators are divided on the prospects for the new government. Some believe that the coalition will be able to overcome the challenges and lead Germany into a successful future. Others are more skeptical and fear that the government will not be able to solve the country's problems.
