Germany's new coalition government under Chancellor Angela Merkel was formally installed after she was re-elected for a second term by MPs. Her coalition government includes her own party, the Christian Democrat CDU/CSU and the centre-right Free Democrats (FDP). Merkel was voted in by 323 to 285 ,with four adstentions. She has promised tax cuts to boost growth and kick-start the economy, but this proposal is already getting flak from the opposition and some state governors. Merkel may be in a stronger political position than in her previous term, but the German economy is far weaker now as a result of the world economic slide. The new Merkel government hopes to kick-start Europe’s biggest economy by cutting taxes, even though Germany's budget deficit is already around €1.5 trillion. It also plans to overhaul the health system and increase social welfare payments in the next four years. Read more: BBC
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