After Germany’s snap federal election, the centre-right Christian Democrats (CDU), their sister party the Christian Social Union (CSU), and the centre-left Social Democrats (SPD) have reached an agreement to form a government. This decision comes after 45 days of negotiations where compromises were made on key issues such as tax cuts and stabilizing pensions. CDU leader Friedrich Merz expressed that Germany is now stable after four years of instability, and he reassured US President Donald Trump that Germany is “back on track.” Both Merz and SPD co-chair Lars Klingbeil emphasized the need to stop illegal immigration and make Germany more competitive. They discussed abolishing express citizenship and reforming welfare to focus on making Germany a modern digital country.
Despite facing disagreements on key issues, the parties maintained good relations and even joked about addressing each other informally with the word “du” rather than the more formal “Sie”. Stock markets responded negatively to US President Donald Trump’s announcement of tariffs across the globe, putting pressure on the parties to reach a quick agreement. The next step in forming the government is for SPD members and an executive committee from the CSU to vote on the agreement, which is expected to take 10 days. After the agreement is signed, it is likely that Merz will be elected chancellor in the first week of May.
The agreement reached by the CDU, CSU, and SPD outlines plans to maintain rent controls and welcomes immigration while vowing to halt illegal migration. The parties have expressed their commitment to working together to address the challenges facing Germany and to transform the country into a modern, digital society. The focus on reducing illegal immigration and making Germany more competitive reflects the parties’ shared goal of ensuring the country’s stability and growth. The decision to extend the citizenship process from three years to five years highlights the government’s intent to strengthen the requirements for becoming a citizen.
The government formation process in Germany has been closely watched, particularly in light of the global economic concerns following President Trump’s tariff announcements. The agreement reached by the CDU, CSU, and SPD demonstrates a commitment to working together toward common goals and addressing key issues facing the country. The parties’ ability to negotiate compromises on contentious issues and maintain good relations bodes well for the stability and success of the forthcoming government. As the parties move forward with the voting process and the election of a new chancellor, the focus remains on building a strong, united government that will lead Germany into a new era of progress and development.
The formation of a new government in Germany signifies a turning point in the country’s political landscape, with the CDU, CSU, and SPD coming together to address important issues and shape the future direction of the nation. The agreement to prioritize tax cuts, pension stabilization, and digital transformation reflects the parties’ dedication to securing Germany’s economic prosperity and competitiveness. By maintaining rent controls and reforming welfare, the government aims to create a more inclusive and sustainable society. The renewed focus on curbing illegal immigration and strengthening citizenship requirements underscores the government’s commitment to upholding Germany’s values and protecting its borders.
As the final steps in the government formation process are completed, including the voting by SPD members and the CSU executive committee, the focus shifts to the expected election of Friedrich Merz as chancellor in early May. With the parties united in their commitment to working together and addressing key challenges, Germany is poised for a period of stability and growth under the new government. The agreement reached by the CDU, CSU, and SPD sets the stage for a collaborative and productive government that will lead Germany into a new era of prosperity and success.
