German Government Formed

The “grand coalition” between Germany’s somewhat-conservative Christian Democrats, who hold a plurality in the Bundestag, and their left-wing Social Democrat rivals, has finally been negotiated. Christian Democrat Angela Merkel will be Chancellor, but at a heavy price: her party has agreed to a tax increase on “top wage earners,” along with several other tax increases, as the price of the deal.

The BBC reports:

[T]here is not much optimism in Germany that this government will be able to address the country’s key problem of mass unemployment.

No, if they keep raising taxes, it’s a safe bet that the government won’t be able to do anything about mass unemployment.

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