Friedrich Merz of the CDU is expected to become the next chancellor in Germany, replacing Olaf Scholz after the CDU and Social Democrats agreed to form a coalition government. This decision comes after international tensions and domestic political pressure, including economic stagnation in Germany and rising far-right support. In a deal reached after weeks of negotiations, Merz is expected to lead the country as the leader of the center-right Christian Democratic Union.
The coalition government has advanced plans for increased defense spending and infrastructure investment, which represents a shift in the CDU’s fiscal stance. The agreement was hastened by various factors including U.S. tariffs, doubts about transatlantic alliances, and the need to address economic challenges in Germany. The parties have sent an invitation to a news conference to discuss the coalition deal, highlighting the potential for new leadership in Europe’s biggest economy after a period of political drift.
Merz’s two-party Union bloc emerged as the strongest force in Germany’s February election, leading to the formation of a coalition with the Social Democrats to secure a parliamentary majority. While the wait for Merz to be elected as chancellor may continue until early May, the agreement will first need approval in a ballot of the Social Democrats’ membership and by a convention of the CDU. The details of the agreement have not been revealed, but plans for higher defense spending and infrastructure development have already been pushed through parliament.
The election occurred earlier than planned after Scholz’s coalition collapsed in November due to infighting and discontent. Germany has been in political limbo since then, leading to the need for a new government to address both domestic and international pressures. Pressure from U.S. tariffs, doubts about America’s commitment to European allies, and market turbulence have all played a role in hastening the formation of the coalition government.
The coalition government faces the task of addressing economic challenges in Germany, including a shrinking export-heavy economy and the need for growth. The prospective coalition’s decision to enable higher defense spending was influenced by the growing doubts about U.S. commitment to European allies and the need to strengthen defense capabilities in Germany and Europe. Additionally, declines in support for the Union in opinion polls and the rise of the far-right Alternative for Germany have added to the pressure to form a government quickly.
The new coalition government brings together the traditional big parties in Germany, but the Union’s election performance was lackluster and the Social Democrats dropped to their worst postwar showing in a national parliamentary election. Together, they hold 328 seats in the 630-member lower house of parliament, paving the way for the formation of a new government under Merz’s leadership. The agreement reached by the CDU and Social Democrats signals a potential shift in Germany’s political landscape and the beginning of a new chapter in the country’s leadership.
