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Germany's CDU/CSU and SPD Reach Key Agreement in Coalition Talks

The conservative and center-left parties move closer to forming a government, aiming to address economic challenges and defense needs with unprecedented spending plans.

Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz looks on as he gives a statement with Bavarian state premier and leader of the Christian Social Union (CSU) Markus Soeder, co-leaders of the Social Democratic party (SPD) Saskia Esken and Lars Klingbeil, after exploratory talks in Berlin, Germany March 8, 2025. REUTERS/Annegret Hilse
Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz speaks with Bavarian state premier and leader of the Christian Social Union (CSU) Markus Soeder as they give a statement with co-leaders of the Social Democratic party (SPD) Saskia Esken and Lars Klingbeil, after exploratory talks in Berlin, Germany March 8, 2025. REUTERS/Annegret Hilse
Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz speaks with co-leader of the Social Democratic party (SPD) Saskia Esken as they leave after giving a statement with Bavarian state premier and leader of the Christian Social Union (CSU) Markus Soeder and co-leader of the Social Democratic party (SPD) Lars Klingbeil, after exploratory talks, in Berlin, Germany March 8, 2025. REUTERS/Annegret Hilse
Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz and co-leader of the Social Democratic party (SPD) Lars Klingbeil leave after giving a statement with Bavarian state premier and leader of the Christian Social Union (CSU) Markus Soeder and co-leader of the SPD Saskia Esken, after exploratory talks in Berlin, Germany March 8, 2025. REUTERS/Annegret Hilse

Overview

  • Friedrich Merz's CDU/CSU bloc and the SPD have completed exploratory talks, clearing the way for formal coalition negotiations.
  • The proposed coalition plans include significant economic and defense investments, potentially bypassing Germany's debt brake to fund growth and military rebuilding.
  • Key policy agreements include stricter measures on irregular immigration, a 15-euro minimum wage, and stable pensions.
  • The coalition aims to finalize negotiations by mid-April, ending months of political deadlock following the collapse of Olaf Scholz's three-way government.
  • The ambitious spending plans respond to shifting transatlantic relations under U.S. President Trump and aim to bolster Germany's economic and security role in Europe.