Germany's Merz Set to Lead New Coalition Government

Germany's Christian Democratic Union (CDU) and Christian Social Union (CSU), along with the Social Democratic Party (SPD), have finalized a coalition agreement that positions Friedrich Merz as the incoming Chancellor, expected to be elected in early May. The 144-page agreement includes plans to modernize the debt brake, implement a 1% annual tax reduction starting in 2028, and establish stricter immigration policies, such as suspending family reunification for two years and tightening asylum rules. The coalition will feature CDU/CSU leaders in key ministries like foreign affairs and economy, while SPD will manage finance and defense. Merz emphasized the coalition as a response to global pressures, including the Ukraine war and US policies. A new Federal Security Council will be created to enhance national security, with a focus on voluntary military service. This coalition comes after the CDU/CSU bloc secured the most seats in the recent Bundestag elections, marking a significant shift in German politics.