New government faces significant challenge of reviving economy as Russia’s invasion of Ukraine and Trump’s erratic policies complicate European security and global trade.
Germany is set for a new government as the leaders of the country’s main centre-right and left parties signed off on a coalition deal six months after the collapse of the previous administration.
The Christian Democratic Union (CDU), Social Democratic Party (SPD), and Bavaria-only Christian Social Union (CSU) signed the agreement setting out the government programme on Monday, almost six weeks after February’s snap election.
The incoming government, agreed upon by the mainstream parties to isolate the far-right Alternative for Germany (AfD), which came second in the vote, inherits significant challenges.
CDU leader Friedrich Merz, expected to be confirmed as chancellor when the government is presented to parliament on Tuesday, must lead a drive to revive Germany’s ailing economy – a task made all the more complicated by Russia’s invasion of Ukraine and United States President Donald Trump’s erratic policies on European security and global trade.
Merz has also promised to curb irregular migration in a clear nod to the rise of the AfD, which said on Monday that it had launched a lawsuit against its designation last week by Germany’s intelligence services as “extremist”.
The designation drew criticism from US officials. US Secretary of State Marco Rubio branded it “tyranny in disguise”.
‘Change, upheaval, uncertainty’
At Monday’s signing ceremony, Merz pledged “strong, well-planned and dependable governance”.
“We live in times of profound change, of profound upheaval … and of great uncertainty, and that is why we know that it is our historic obligation to lead this coalition to success,” he said.
The chancellor-in-waiting said the incoming government “is determined to move Germany forward with reforms and investments” and also promised “a government whose voice is heard in Europe and the world”.
The SPD’s Lars Klingbeil, the designated vice chancellor and finance minister, said, “The new government needs real teamwork more than ever.”
“We want to lead Germany back to where it belongs.”
The outgoing coalition government of SPD Chancellor Olaf Scholz collapsed on November 6, the day Trump was re-elected to the White House.
Scholz himself will not be part of the new cabinet but will stay on in parliament as a lawmaker.
