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Germany Edges Closer to Coalition Government as Merz Pushes for Defense and Economic Reforms

Chancellor-in-waiting Friedrich Merz seeks to finalize a coalition with the SPD, focusing on military spending, economic recovery, and migration policies.

  • Friedrich Merz's CDU/CSU bloc and the SPD have concluded exploratory talks, moving toward formal coalition negotiations to form Germany's next government by mid-April.
  • Key proposals include €500 billion for infrastructure and defense spending, requiring constitutional amendments to bypass strict borrowing rules.
  • Merz has proposed discussions with France and Britain on nuclear weapons sharing to strengthen European defense, complementing the U.S. nuclear shield.
  • The coalition agreement includes stricter border controls, measures to reduce irregular migration, and tougher deportation policies to counter the rise of the far-right AfD.
  • Economic plans aim to revive growth with tax cuts, energy cost reductions, and support for industries like semiconductors and electric vehicles, alongside a €15 minimum wage.
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