CDU/CSU, SPD Coalition to Stabilize Germany

Germany's conservative Christian Democratic Union (CDU), led by Friedrich Merz, has reached a coalition agreement with the center-left Social Democrats (SPD) to form a new government, ending months of political uncertainty. Merz is expected to become the next Chancellor, succeeding Olaf Scholz, after the coalition deal is approved by both parties. The agreement includes measures to boost military spending, infrastructure investment, and tax breaks, while also addressing contentious issues like immigration control. This coalition aims to stabilize Germany amid economic challenges exacerbated by US trade tariffs and geopolitical tensions. Despite the coalition's formation, recent polls show the far-right Alternative for Germany (AfD) gaining popularity, posing a significant challenge to the new government. The coalition's urgency reflects pressure from both domestic issues and external factors, including concerns about transatlantic relations under the Trump administration.