Why will the Netherlands, Sweden, and Denmark be unhappy with Merkel’s replacement?

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Why will the Netherlands, Sweden, and Denmark be unhappy with Merkel’s replacement?

ANGELA MERKEL has stepped down as Chancellor of Germany, with Olaf Scholz taking her place – a move that will be “anathema” to the frugal Northern European countries.

Under a deal that would end Mrs Merkel’s 16-year reign, Mr Scholz will lead a three-party coalition with vast plans for Germany’s transition to a green economy. His Social Democratic Party (SPD) has been in power in Germany for about two months. Mr Scholz has subsequently been in talks with the Greens and the Free Democrats (FDP), who will form a government based on a climate and business-friendly pact.

The alliance prioritizes the environment, with the parties vowing to eliminate coal consumption by 2030, eight years ahead of schedule.

Since then, a large list of winners and losers from the coalition has been compiled in and around Europe, highlighting the numerous benefits and challenges that outside powers now face.

Germany’s coalition is expected to be decisively pro-European, as the SPD, Greens, and FDP underscored during discussions announced on Wednesday.

However, it is unclear which approach the trio will adopt when it comes to issues such as EU financing.

According to Politico, the coalition has expressed “openness to a revision of fiscal regulations and some form of fiscal solidarity.”

This would be welcome news to nations like Italy and Spain, which supported programs like the EU recovery fund, which saw members share debt for the first time in the bloc’s history.

However, this legislation caused a schism within the EU, with many northern European countries, such as the Netherlands, Sweden, Denmark, and Austria, initially rejecting the proposal, arguing that more loans, rather than grants, should be given out.

Given that Germany is the continent’s largest economy, whatever strategy Mr Scholz and his colleagues take when it comes to the EU, their actions will have a significant impact on Germany’s neighbors.

Politico identifies the Netherlands, Sweden, and Denmark as among the losers, citing their initial opposition to the EU recovery fund.

The coalition treaty was “anathema” to the “frugal” countries of the Netherlands, Sweden, and Denmark, according to the journal, because it was hazy on whether Berlin would approve a fresh round of Commission bonds or any other sort of EU finance.

Christian, on the other hand, said in an interview the next day, “Brinkwire Summary News.”

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