Wed Apr 09 16:41:11 UTC 2025: ## German Conservatives and Social Democrats Form Coalition Government Amidst Economic Uncertainty and Rising Far-Right Support
**Berlin** – Following weeks of negotiations, German conservatives and the Social Democrats (SPD) have reached a coalition agreement, paving the way for Friedrich Merz to become Chancellor. The deal, announced Wednesday, aims to boost economic growth and increase defence spending in the face of a global trade war and the rise of the far-right Alternative for Germany (AfD).
Merz, leader of the Christian Democratic Union (CDU), emphasized the coalition’s commitment to strengthening Germany’s economy and its relationship with the United States, while also acknowledging the need for a united European response to escalating trade tensions. He directly addressed US President Donald Trump, stating, “Germany is back on track.”
The coalition agreement includes plans to cut taxes for middle and lower-income earners, reduce corporate taxes, lower energy prices, support the electric car industry, and reform Germany’s “debt brake” spending limits. To address the rise of the AfD, the coalition also plans stricter migration policies, including turning away asylum seekers at the border and scrapping fast-tracked naturalization. Increased defence spending, a voluntary military service, and the creation of a national security council are also part of the plan.
The CDU will control key ministries, including the economy, foreign affairs, and chancellery, while the SPD will lead the finance and defence ministries. However, the coalition agreement still requires approval from both the SPD membership and the CDU party convention before Merz can be officially elected Chancellor by parliament.
Despite the coalition’s formation, a recent poll shows the AfD leading in public support for the first time, surpassing the CDU. This underscores the challenges facing the new government as it navigates economic uncertainty and the growing influence of the far-right.
First Piper 