Although the current situation is figuratively making me throw up each time I think about it, what else is she supposed to do? Half of the European governments are far right.
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And let's not forget she herself is also not too much of a liberal activist fighting for civil rights and an economy with well-distributed wealth.
Correct me if I'm wrong, I didn't follow EU politics at the time of the last election, but didn't she campaign on green-deal policies for her first term? I remember reading about this somewhere. So moving away from that and closer to ECR would be quite the shift.
Conservatives always try to poach the hottest current topic from other blocks. Last election everyone was concerned about climate change and the green parties got quite some share in the polls, so conservatives campaigned on green policies. This year anti-immigration and right wing bullshit is widespread, so they will campaign on these topics. For them it's more about conserving their political power than actual policies.
From current polls: a centrist government with the S&D and the Greens (close) or Renew. On the right, EPP+ECR+RE would also have no majority, so they would need ID as well, which she kinda ruled out with this statement. From what I've heard Renew is often at odds with the German FDP, which I take as a good sign.