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After the CDU’s election success, SPD incumbent Berlin Mayor Franziska Giffey said she would no longer seek to continue leading her ruling coalition, which retained a majority—relegating the SPD to being junior partners of the CDU.
Source: https://foreignpolicy.com/2023/03/17/germany-cdu-conservatives-merz-culture-war-berlin-elections/
Employment in the country rose in the first quarter and inflation has eased, but higher interest rates will keeping weighing on spending and investment, said Franziska Palmas, senior economist for Capital Economics.