Overview

• The coalition agreement emphasizes securing a free trade deal with the United States while reducing import tariffs to address trade tensions exacerbated by US policies under President Trump.
• Germany plans to recalibrate its foreign policy, including continued military support for Ukraine, with debates ongoing about providing Taurus missiles.
• Economic growth and industrial support take precedence in domestic policy, with a €10bn 'Germany fund' and energy price reductions for businesses and households.
• The coalition signals a shift in climate policy by balancing environmental goals with economic competitiveness, though the coal phaseout by 2038 remains intact.
• Plans include strengthening European defense independence and exploring deeper cooperation with EU allies amid uncertainty over US NATO commitments.