Overview

• The coalition agreement was finalized after six weeks of negotiations and presented in Berlin, with Friedrich Merz set to become Chancellor on May 7, pending party approvals.
• Key reforms include suspending family reunification for subsidiarily protected persons, ending accelerated naturalization, and introducing a voluntary defense service modeled on Sweden's system.
• Economic measures feature tax cuts for small and middle incomes, expanded depreciation rules, and a gradual reduction in corporate taxes starting in 2028 to address the ongoing recession.
• The agreement reshuffles ministerial roles, with the CDU reclaiming the Foreign Ministry after 60 years, alongside six other ministries, while the SPD secures seven posts, including Finance and Defense.
• Public skepticism and internal party tensions persist, particularly around Friedrich Merz’s leadership, with 60% of Germans in polls doubting his suitability as Chancellor.