Overview

• CDU leader Friedrich Merz and SPD have reached a preliminary agreement to form a coalition, including plans to loosen Germany's debt brake for defense and infrastructure funding.
• The proposed measures include a massive investment in military capabilities and a new fund for infrastructure projects such as schools, roads, and digitalization.
• The coalition requires constitutional amendments, making Green Party support essential, but the Greens criticize the plans for lacking structural reforms and adequate climate commitments.
• Internal dissent persists within both the CDU and SPD, with some members calling for further concessions on social and migration policies.
• Merz aims to finalize the coalition by Easter, but unresolved issues and Green Party demands could delay progress.