German Economy Shrinks as Neighbors Grow, Causing Concern and Debate Over Subsidies
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Germany's economy is shrinking while other major economies grow, worrying German business leaders.
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Economy Minister Habeck has proposed an ambitious industrial strategy to support German companies with subsidies.
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A key part is capping electricity prices for industries to remain competitive globally.
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Habeck's coalition partners resist the plan, citing fiscal constraints and ideological differences.
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German industry warns core sectors may leave without government support, but how to finance subsidies remains unclear.