Overview

• Friedrich Merz of the CDU is set to become chancellor, leading a coalition with the SPD's Lars Klingbeil as co-leader.
• The agreement includes hundreds of billions of euros in investments aimed at rearming Germany and upgrading infrastructure.
• The SPD secured a commitment to raise the minimum wage to €15, while the CDU pushed for stricter border controls and deportations of undocumented migrants.
• Detailed negotiations to finalize the coalition government are expected to begin next week.
• European neighbors are closely monitoring Germany's evolving role in security and defense as the continent seeks to reduce reliance on the United States.