Friedrich Merz is close to forming the German government: key coalition agreements

Photo: dpa

Germany is preparing for political change

The winner of the German elections, the leader of the conservative CDU/CSU bloc Friedrich Merz, is one step closer to forming a new government. According to The Guardian, the preliminary talks between his party and the Social Democratic Party of Germany (SPD) ended on Saturday, and now full-fledged coalition negotiations are set to begin.

Merz promises to return Germany to its position as a European leader, strengthen the economy and make unprecedented investments in the armed forces.

The main agreements of the coalition

The leaders of the CDU/CSU and SPD announced that key agreements had been reached:

– Strengthening control over illegal migration – a ban on entry for all illegal migrants, including asylum seekers.

– Raising the minimum wage – from 2026, it will be EUR 15 per hour.

– Investments in infrastructure – creation of a €500 billion fund for 10 years.

– Record defence spending – plans to expand the army and exclude military spending from the constitutional “debt brake”.

Merz stressed that the new government is committed to putting the country back on the “right track” and that Germany must prepare for significant international challenges.

Political paralysis is coming to an end

A new government is expected to be formed in Germany by mid-April, ending six months of political paralysis following the collapse of Olaf Scholz’s coalition in November.

The coalition talks came as a surprise to European partners, as the new German government plans to spend billions on economic and military reconstruction.

Trump and NATO: New challenges for Berlin

Merz said that his reform plan is a response to the “sweeping changes” initiated by US President Donald Trump. The American leader has called into question the stability of the transatlantic alliance, forcing Berlin to urgently review its military policy.

The proposed defence spending will be the largest for Germany since the Second World War.

Will the deal go through? The position of the Greens

Despite progress in the negotiations, final approval of the plans requires the support of the Green Party. They oppose the exclusion of military spending from the debt ceiling and demand priority for climate programmes.

“Today we are even further away from an agreement than in previous days,” said Felix Banaszak, co-chairman of the Greens.

Germany’s new parliament will convene on 25 March, after which the far-right Alternative for Germany (AfD) and the far-left Die Linke party will be able to block important government initiatives.

Merz and his allies have limited time to finalise a coalition agreement and launch reforms that could change Germany’s course for decades to come.