Merz Makes the Merge: Germany's Conservatives Seal Coalition Deal with Centre-Left

Germany's conservative CDU/CSU bloc, led by Friedrich Merz, has finalized a coalition agreement with the centre-left Social Democrats (SPD), marking a pivotal moment in the country's political landscape. The deal comes after weeks of intense negotiations following February's snap elections, where Merz emerged victorious but fell short of a majority.  

The coalition aims to revive growth in Europe's largest economy amidst global trade tensions and domestic challenges. Merz has pledged to ramp up defense spending, support struggling businesses, and adopt a tougher stance on migration, signaling a shift from the liberal policies of his predecessor Angela Merkel.  

The agreement must still be ratified by SPD members, but if approved, Merz is set to become Germany's next chancellor in May. The coalition excludes the far-right Alternative for Germany (AfD), whose support surged in the elections, making this partnership a crucial step in maintaining democratic stability.  

Sources: Reuters, DW, MarketScreener, The Straits Times