Merkel’s Christian Democrats Play Hardball With Coalition’s Future in Balance

The Social Democrats (SPD), junior partners in Angela Merkel's coalition, have elected new leadership. The new leaders are divided on whether to stay in the coalition, with some advocating for policy changes and others preferring to leave. The SPD has set high demands for the CDU, Merkel's party, which may lead to different scenarios, including a minority government or new elections. The upcoming SPD party convention will likely not be contentious, but strict conditions will be set for remaining in the coalition, challenging the CDU's stance on the balanced budget.

What potential scenarios are discussed regarding the future of the government?

How has the SPD leadership's stance on the balanced budget changed, and what implications does this have?