- CDU’s Friedrich Merz is expected to become the next prime minister, replacing Olaf Scholz after the German Central Right-wing Christian Democratic Union (CDU) and center-left Social Democrats agreed to form a coalition government.
- The alliance has raised plans for defense spending and infrastructure investment, which marks a change in the CDU’s fiscal stance.
- International tensions, including U.S. tariffs and suspicion of the transatlantic alliance, as well as domestic political pressures, have exacerbated the deal, which has also exacerbated domestic political pressures, namely far-right support and Germany’s economic stagnation.
After weeks of negotiations, conservative and centre-left parties formed a new German government on Wednesday, paving the way for Europe’s largest economy after months of political drift.
Friedrich Merz, the leader of the Central Christian Democratic Union, is expected to become Germany’s next leader under the agreement, replacing outgoing Prime Minister Olaf Scholz. The parties involved sent an invitation to a press conference on the Alliance Agreement at 3 p.m. (1300 GMT).
Merz’s bipartisan coalition group (Merz) became the most powerful force in the February 23 election. Merz turned to Scholz’s centre-left Social Democrats to form a coalition with the parliamentary majority.
Experts say
The waiting is not over yet
Perhaps it will take some time before Parliament can elect Melz as prime minister in early May. Until then, the alliance agreement will need to be approved in the votes of the Social Democratic Party members and the Meles CDU’s congress.
Details of this protocol are not immediately available.
Friedrich Merz is expected to become Germany’s next leader after the establishment of a new German government by the Central Right-wing Christian Democratic League and the Central Left-wing Social Democratic Party. (Michael Kappeler/DPA via AP)
But last month, both sides have pushed for parliament’s plans to enable higher defense spending to pass the easing of strict debt rules and build a massive infrastructure fund designed to promote a stagnant economy.
This is a rough thing for Meers, whose party opposed holding new debts before the election without completely closing the door to future self-imposed “debt brakes” on Germany.
The elections took place seven months before the unpopular league of Scholz was held in November, a term that was increasingly subject to infighting and widespread outrage. Germany is the largest member of the 27 EU countries and has been in political dilemma since then.
World leaders deal with Trump’s widespread tariffs: “Time of Turbulence”
Pressure from abroad and at home
U.S. President Donald Trump’s market turmoil announced widespread tariffs has increased pressure on the Meers union and Social Democrats to conclude their coalition negotiations.
Tariffs could increase the dilemma of the export-heavy economy in the past two years, and growth would be the core task of the new government.
Increasing doubts about the U.S. commitment to European allies are also involved in the decisions of potential alliances to achieve higher defense spending. Meers said last month that Germany and Europe must quickly strengthen their defense capabilities, “Everything must be done for our defenses and it must be done.”
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Another factor in the deal was that in the polls, the decline in the coalition was a support for slipping in the election, while Germany’s far-right alternative took a strong second in February, as the political vacuum continued.
The potential new coalition brings together traditional big parties in Germany after World War II, but the coalition won the election in February, with Social Democrats falling to their worst post-war performance in the national parliamentary election.
They collectively own the 630-member House of Parliament and the federal government has 328 seats.
