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Germany's SPD Approves Coalition Deal, Paving Way for Merz to Become Chancellor

With 84.6% backing from SPD members, the CDU/CSU-SPD coalition secures majority rule and outlines ambitious social and economic reforms.

German Labour Minister Hubertus Heil attends a so-called Social Democratic Party (SPD) dialogue conference with the party leadership as part of the SPD members' vote on the coalition agreement between the SPD, CDU and CSU, in Baunatal, Germany, April 26, 2025. REUTERS/Leon Kuegeler/File Photo
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FILE - German Chancellor Olaf Scholz arrives for a German government cabinet meeting at the chancellery in Berlin, Germany, Nov. 27, 2024.

Overview

  • The Social Democratic Party (SPD) ratified the coalition agreement with the CDU/CSU by an 84.6% majority on April 30, clearing the final barrier for Friedrich Merz to assume office as chancellor on May 6.
  • The coalition agreement includes significant commitments such as a €15 minimum wage, extensive infrastructure investments, pension safeguards, and extended rent caps.
  • The SPD secured the finance ministry and six other cabinet posts, with co-chair Lars Klingbeil expected to serve as finance minister and vice chancellor.
  • Germany's economy, in its third year of contraction, faces challenges including U.S. trade tensions and the need for defense and infrastructure investment, priorities highlighted by Merz.
  • Both major parties excluded cooperation with the far-right AfD, which achieved a record second-place finish in the February election, underscoring efforts to maintain democratic stability.