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Will the new German coalition lead Europe towards a federal union with room for common debts?

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Outgoing German Chancellor Angela Merkel recently celebrated the end of her 16-year term in office in Berlin with a traditional military band playing hits from Hildegard Knef to Nina Hagen.

To what extent the new coalition of Social Democrats, Liberals and Greens will set the pace in the EU remains to be seen. The coalition agreement contains some controversial provisions: the EU is to develop into a federal state in accordance with the principles of subsidiarity and proportionality; a consti…

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