After weeks of negotiations, the conservative leader Friedrich Merz has finally found an agreement with the SPD Social Democrats to form a government in Germany. The goal: to relaunch the growth of the first European economy just as the world dances on the verge of a global commercial war.
The agreement comes after the February elections, where Merz, leader of the CDU/CSU has obtained the relative majority but remained far from the numbers to govern alone. Alternative for Germany (AFD), the extreme right, has gained ground until second place, putting further pressure to find a quick solution.
Message to Trump: “Germany is back”
During the press conference with the new allies, Merz spoke clearly. And in English, to leave no doubt: “The Key Message to Donald Trump is Germany is back on track”, the key message for Donald Trump is that Germany is again on track said. The future chancellor has promised more expenditure for the defense and a relaunch of German competitiveness. The new coalition pact, he explained, is a “strong and clear signal” both to citizens and to European partners: “Germany will have a government capable of acting”. His action will also act as a tow to the European Union. “Germany will be a very strong partner inside the EU and will advance the EU,” he guaranteed.
In the text of the agreement there is the commitment to keep the relationship with the United States firm – the first commercial partner – and the goal of reaching a free trade agreement. But Merz also underlined the need for the EU to respond in a united way to the war of duties triggered by the White House. “Economic uncertainty is increasing in an enormous way,” he said, referring to the decisions of the Trump administration who agitated the markets during the week.
Speaking of Trump’s decision to announce a 90 -day truce on the duties, Merz has lost time to claim its merit: “This shows that paying unit,” he said on TV RTL, going to propose the total abolition of the transatlantic duties as a definitive solution, as well as also made by the president of the Ursula von der Leyen commission.
Tax cuts, cheaper energy
On the internal front, the agreement provides for a package of economic measures with tax cuts for medium-low incomes, reduction of fees on businesses, less expensive energy and support for electric car. Via also the hated law on the supply chain. There is also a commission to review the so -called “debt brake”, which has been criticized as a brake also for growth.
Merz’s decision to remove the constitutional brake on the debt to launch a large investment plan for the defense and infrastructure (potentially more than a trillion of euros) has raised the perspective of a turning point in the nation once a rigid guardian of austerity, as well as the request to change the stability and growth pact.
Close on immigration
The new coalition also adopts a harder line on immigration: closing of the borders, stop to accelerated naturalization and general tight. Voluntary military service is also back and a National Security Council is established. Also accelerated procedures for military contracts and support for the candidacy of Ukraine in NATO is also coming.
Merz, 69, had already branded the United States of Trump as “unreliable ally”. Now it aims to strengthen European defense, contain Russia and help German businesses put in difficulty with high costs and weak demand.
The roles
According to rumors, the CDU will control the ministries of the economy and foreign foreign while Finance and Defense will go to the SPD. This would put Lars Klingbeil on pole for finances and should guarantee Boris Pistorius confirmation to defense.
