The coalition agreement in Germany has set the stage for Friedrich Merz, the leader of the conservatives, to take office as the country’s 10th prime minister since World War II. This deal also brings together Merz’s Christian Democratic Union (CDU) and the Social Democrats (SPD), led by outgoing Prime Minister Olaf Scholz.
Notably, both parties have agreed to exclude the far-right Alternative for Germany (AFD) from their collaboration.
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According to reports from German broadcasters, the CDU, alongside its Bavarian counterpart, the Christian Social Union (CSU), emerged victorious in the recent election, capturing 28.6% of the vote. In contrast, the AFD garnered 20.8%, while Scholz’s SPD received only 16.4%. The coalition’s formation was approved through online voting by over 358,000 SPD members, with more than 56% participating and 84.6% supporting the agreement.
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The CDU/CSU and SPD are eyeing investments in German infrastructure, plans to boost the minimum wage to $17.01 per hour, and measures to control rent prices. The coalition agreement allows the SPD to hold crucial positions, such as the Ministry of Finance, Justice, and Defense, securing a total of seven ministries.
Furthermore, SPD leader Lars Klingbeil is poised to step in as Deputy Prime Minister and Finance Minister, playing a pivotal role as the country navigates the effects of former President Donald Trump’s tariffs.
SPD general secretary Mattias Meiersh expressed, “In these extremely difficult times in global politics, we are responsible for safety, economic growth, safe employment, and equal opportunities.” Merz, meanwhile, celebrated the backing of the SPD agreement with a post on X, noting that this coalition sends a strong message about the political center’s ability to act decisively and responsibly.
