The agreement opens the way to Merz, the head of the Christian Democratic Union of the Center-Drive, to be sworn as the next German Chancellor in a few weeks.
The coalition agreement comes at a time of profound uncertainty for Germany and Europe after Trump stuck prices last week 20% on the European Union, a decision that could strike the economy oriented towards the export of Germany particularly difficult. He also arises while Merz promises to strengthen the army of his country in response to the threat that Putin poses to Europe and the weakening of the transatlantic alliance of Germany has long been for its defense.
These twin shocks – European economics and security – have intensified pressure on Merz and its SPD counterparts to quickly form a stable government capable of responding. Germany was led by a low minority government under the outgoing Chancellor Olaf Scholz since its fractious tripartite coalition collapsed in November for disagreement on expenses.
Despite Merz’s promises to provide a strong German leadership in Europe, he emerges from coalition negotiations as a damaged party leader. Its historic agreement with the SPD and the Greens to free hundreds of billions of euros in expenses fueled for defense and the infrastructure has been widely celebrated abroad, but a fomented dissatisfaction in certain parts of its conservative base at the house, opening it to the attacks of the alternative to the extreme right for Germany (AFD), which should become the biggest opposition party of the country. Merz’s approval notes have dropped since the electoral victory of its curators.
The final phase of negotiations between the Conservatives and the SPD brought several key points to the surface, the SPD putting pressure for tax increases on high employees and the conservatives opposing new tax increases.
Migration has also become one of the most politically loaded questions at the end of talks. Faced with the pressure of its right flank due to the strong AFD electoral result, the Merz conservatives pushed the refusals of asylum seekers to the German borders. The SPD rejected, arguing that such a decision would alienate the neighbors of Germany at a time when the country needed EU solidarity to retaliate against Trump’s prices.
A joint press conference with party leaders is expected on Wednesday in Berlin, where the coalition agreement should be officially presented. The coalition agreement must still be voted by the members of the SPD. The parts of the Merz conservative block do not require complete votes for approval.
