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Germany’s Merz clinches coalition deal, ending months of deadlock.

Christopher Yarborough by Christopher Yarborough
May 5, 2025
in Economics
Merz

The conservatives under Friedrich Merz have formed a coalition with the Social Democrats (SPD) to end five months of political deadlock following the collapse of the previous government. Merz, 69, described it as “a strong and clear signal” to Germany and the EU that Europe’s economic powerhouse will soon have a decisive government. The Christian Democrats achieved their February election victory while facing pressure from U.S. President Donald Trump’s trade tariffs and the rising Alternative for Germany (AfD) party which now leads the polls ahead of Merz’s party.

The formal process of electing Merz as chancellor may occur in May yet he possesses a strong 13-seat majority. He declared on Wednesday that the team worked tirelessly to create a solid plan for advancing Germany while he promised reforms to stabilize the nation and restore European confidence. The CDU and SPD demonstrated their sense of urgency by relaxing Germany’s strict debt regulations to access funds for military modernization and infrastructure repair which formed essential parts of their new agreement. The new measures will address public concerns by implementing border security measures to control and substantially stop irregular immigration.

Merz feels positive about his party’s prospects as he plans to begin in May. The Ipsos poll from Wednesday revealed that the CDU lost support to 24% while the AfD maintained its lead at 25%. AfD co-leader Alice Weidel declared this shift as historic while announcing “political change.” The German economy faces instability because of Trump’s tariffs which has raised the importance of Merz’s efforts to restore stability to the country.

Tags: Friedrich Merz
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