SPD to Decide Today on New Government Deal in Germany

BERLIN, April 30

Germany’s Social Democratic Party (SPD) will announce today whether its members have approved a deal to form a new government with the conservative CDU/CSU parties. If they say yes, it will remove the final obstacle to forming a new government in Europe’s biggest economy.

After both major parties lost many votes in the February election, joining forces was the only way to create a majority government. Both sides had already ruled out working with the far-right AfD party, which came in second place for the first time.

Over the past two weeks, SPD members have been voting on the coalition agreement written by the leaders of both parties. Most experts believe the members will vote yes. If that happens, CDU leader Friedrich Merz is expected to become chancellor on May 6.

However, if SPD members reject the deal, it would create more political problems in Germany, which has not had a majority government for five months.

Germany’s economy is now in its third year of shrinking. The new government will focus on fixing this, especially as U.S. President Donald Trump’s new tariffs could harm Germany’s exports even more.

Although the SPD only got 16.4% of the vote — its worst result ever — it still gained a lot from the deal. The conservatives had no other real options, so they had to agree to many SPD demands.

The coalition agreement includes:

• Big investments in Germany’s roads, schools, and infrastructure
• Raising the minimum wage to €15 per hour ($17.01)
• Keeping pensions at 48% of average wages
• Extending rent controls

The SPD will also get the powerful finance ministry and six other cabinet positions.

But not everyone is happy. The SPD had to agree to tougher immigration rules and cuts to unemployment benefits. It also failed to get a tax increase for the rich. This has upset many young SPD members, who are asking others to vote against the deal.

If SPD members reject the deal, there are few good options. They could try to make a new deal, but conservatives say they’ve already compromised enough. Another idea is a minority government, but that would be unstable. Or Germany could hold new elections — and the AfD might even win, as they are doing well in recent polls.

Another option would be for the conservatives to work with the AfD — but this is seen as very unlikely.

“If SPD members vote no, it would be a disaster for the party leaders,” said political analyst Jun. “They would probably have to quit.”

($1 = €0.8819)

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