Chancellor-in-waiting Friedrich Merz announces a new coalition agreement between Germany’s CDU and SPD, outlining plans to strengthen the economy, boost defense spending, and address the challenges posed by U.S. tariffs and growing global instability.
Friedrich Merz, Germany’s incoming Chancellor, unveiled a new coalition deal between the country’s two main centrist parties, the Christian Democratic Union (CDU) and the Social Democratic Party (SPD), in a bold announcement.
Merz, leader of the CDU, which won February’s federal election, framed the coalition as a path to restoring Germany’s economic strength and stability amidst growing political and economic tensions globally.
“The future coalition will reform and invest to keep Germany stable, make it more secure, and economically stronger,” Merz said, addressing the gathered press in Berlin.
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He emphasized that the deal comes at a time when international challenges, including the ongoing war in Ukraine and economic uncertainty triggered by U.S. tariffs, have put Germany’s stability to the test.
“America’s recent decisions have led to new market turbulence,” Merz said, referring to the sweeping tariffs imposed by the Trump administration, which have exacerbated global market instability.
These tariffs, according to Merz, have fueled fears of a potential recession, with Germany’s economy teetering on the brink due to the turmoil in global trade.
The coalition agreement includes measures to address both internal and external security, such as lengthening the time required to obtain German citizenship from three years to five and significantly increasing Germany’s defense spending.
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Merz also proposed creating a Swedish-style voluntary military service scheme. This approach aligns with broader European concerns over defense, particularly with the ongoing threat from Russia and the shifting stance of the United States toward European security.
Merz acknowledged the challenges posed by the rising far-right in Germany, with the Alternative for Germany (AfD) gaining significant ground in recent polls.
For the first time, the AfD has surpassed the CDU in voter support, with a recent Ipsos poll showing the far-right party at 25% compared to the CDU’s 24%. This surge has added urgency to coalition talks and is reshaping Germany’s political landscape.
In response, Merz has pledged to address immigration policies, which have become a key issue following a series of attacks involving migrants. He has promised tighter immigration controls as part of efforts to secure national borders and manage public concerns.
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As Merz takes steps toward finalizing his government, the coalition’s ability to navigate these challenges—especially the economic fallout from U.S. tariffs—will be critical in determining Germany’s future role on the global stage.
The coalition deal signals a shift toward a stronger, more secure Germany, with a focus on both domestic stability and broader European cooperation.
