German coalition agreement paves way for new government

Germany's conservative bloc, led by Friedrich Merz, has finalized a coalition agreement with the Social Democrats (SPD) following parliamentary elections. The agreement, which spans 144 pages, outlines a range of economic policies including corporate tax cuts, an innovation fund for SMEs, and tax incentives for workers. Merz, set to become chancellor in early May, emphasized the need for strong support for Ukraine amidst rising international tensions. The coalition's economic strategy appears ambitious but may face challenges due to fiscal constraints. Key highlights include plans to ramp up defense spending and a tougher stance on migration. The coalition agreement is pending approval from SPD members before it can take effect.