Wed Apr 09 15:25:10 UTC 2025: ## German Conservative and Center-Left Parties Form Coalition Government
**Berlin, Germany –** After weeks of negotiations, Germany’s center-right Christian Democratic Union (CDU) and the center-left Social Democrats (SPD) reached a coalition agreement on April 9, 2025, ending months of political uncertainty. This deal paves the way for a new government in Europe’s largest economy.
CDU leader Friedrich Merz is expected to become the next Chancellor, succeeding Olaf Scholz. The coalition, which commands a clear majority in parliament with 328 out of 630 seats, will be formally confirmed after the coalition deal receives approval from the SPD membership and a CDU convention. A parliamentary vote to elect Merz as Chancellor is anticipated in early May.
The agreement follows the February 23rd election, where the CDU emerged as the strongest party, albeit with a lackluster performance. The SPD achieved its worst post-war result. The coalition’s formation was partly spurred by the recent decline in CDU support in opinion polls and the rise of the far-right Alternative for Germany.
The new government’s priorities will include boosting Germany’s stagnant economy through a large infrastructure fund and increasing defense spending, a shift from the CDU’s pre-election stance on debt. This decision was influenced by market volatility stemming from US tariffs and growing concerns about the US commitment to European allies.
The coalition’s formation marks a return to power for Germany’s traditional major parties, ending a period of political limbo following the collapse of Scholz’s previous coalition in November 2024. The new government faces the significant challenge of reviving economic growth and strengthening Germany’s defense capabilities in a complex international environment.
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