Germany’s deputy chancellor has made a major concession in talks on next year’s budget, amid fears that a simmering row over the spending plan could bring down the country’s fragile coalition government.
Robert Habeck said €7bn in government subsidies previously earmarked for a new Intel chip factory could now be used to plug a hole in the budget, in an olive branch to finance minister Christian Lindner.
Habeck made an impassioned appeal for unity on Monday, pointing to the possibility of a Donald Trump victory in the US presidential election, recent Russian advances in Ukraine and the darkening economic outlook.
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