1st May Germany: Germany is on the cusp of a high-level political change as conservative leader Friedrich Merz is going to become the country’s next chancellor. This follows a breakthrough coalition agreement between Merz’s Christian Democratic Union (CDU) and incumbent Chancellor Olaf Scholz’s Social Democratic Party (SPD).
The unorthodox CDU-SPD coalition represents a major shift in German politics. Even though they came third in the polls with their worst post-war performance (16.4%), the SPD has signed up to form a coalition with the CDU/CSU group, which received the largest share of votes at 28.6%. The second-placed far-right Alternative Germany (AfD) party, which polled 20.8%, has been formally ruled out of any coalition government.
The deal was voted in by the majority of SPD members in a virtual ballot, with 84.6% of voting members supporting the pact. The alliance provides the SPD with significant cabinet positions — including finance, justice, and defense — and installs SPD leader Lars Klingbeil as vice chancellor and finance minister.
The new alliance has promised to invest significantly in infrastructure, increase Germany’s minimum wage to $17.01/hour, and introduce rent controls. These measures are aimed at stabilizing the economy during a world of turmoil, such as economic pressure ignited by the tariffs set by U.S. President Donald Trump.
CDU leader Friedrich Merz endorsed the coalition, saying it is a united and action-oriented political center that can handle the country’s challenges.
This coalition paves the way for bold leadership and overdue reforms,” Merz said on X. “Germany is ready to advance.
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