BERLIN – Conservative leader and election winner Friedrich Merz took a major step forward on Saturday in forming Germany’s next government, with promises of bold economic reform and record-breaking defense investments to restore Berlin’s influence in Europe. His vision includes a dramatic shift in Germany’s global role, responding to the geopolitical realignment led by U.S. President Donald Trump.
Merz’s CDU/CSU bloc and the defeated Social Democrats (SPD) of outgoing Chancellor Olaf Scholz announced they had concluded preliminary talks and would enter full coalition negotiations. Both parties emphasized the urgent need to address international instability and the growing challenges within the European Union.
“We face a massive task—internationally and within the EU. It’s time for Germany to lead with strength,” Merz said.
While Merz committed to new, stricter measures on illegal immigration, SPD leader Lars Klingbeil said his party secured key concessions, including a €15 minimum wage and guaranteed pension stability.
The coalition aims to form a government by mid-April, ending nearly six months of political paralysis following the collapse of Scholz’s three-party coalition in November.
Notably, the CDU-SPD alliance has already surprised European partners with its proposal to inject hundreds of billions of euros into Germany’s stagnant economy and its underfunded military—marking the largest national investment since World War II.
This strategic shift comes amid rising concerns about the reliability of NATO and Europe’s standing on the world stage in the Trump era.
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