German Political Groups Form Coalition, Set to Swear In New Government
TL/DR –
Germany’s CDU/CSU and SPD parties have agreed on a coalition deal, paving the way for a new government. The coalition’s 144-page agreement outlines plans for reduced income tax, more stringent migration policies, and commitment to making Germany climate-neutral by 2045. Friedrich Merz, CDU party leader, is set to be the new chancellor, with Johan Wadephul as Foreign Minister and the SPD’s Lars Klingbeil as vice chancellor and finance minister.
Germany’s Coalition Government Agreement
The conservative CDU/CSU political union and the Social Democrats in Germany have finalized a coalition deal, enabling a new government to assume office on Tuesday. The soon-to-be chancellor, CDU leader Friedrich Merz, expressed his readiness to get to work.
Coalition’s Responsibility Towards Germany
Emphasising the motto “Responsibility for Germany”, the coalition agreement is a 144-page document promising to strengthen Germany’s defence capabilities, extend powers to police and intelligence services, and adopt a new approach to migration policy. It also plans to review the partial legalisation of cannabis and implement measures to reduce energy costs.
Towards A Prosperous Economy
The coalition reaffirms their commitment to the social market economy, with plans to reduce taxes for small and medium incomes and create incentives for longer working hours. Scheduled for 2026 is the reintroduction of a reduced VAT rate for the catering sector.
Commitment To Climate Neutrality
The coalition aims to make Germany climate neutral by 2045, in line with the Paris Climate Agreement. They plan to replace the existing Heating Act with a new Building Energy Act focusing on effective CO2 reduction and continue the expansion of wind and solar power.
Cabinet Selection
Johan Wadephul of CDU is set to replace Annalena Baerbock as Foreign Minister, with Boris Pistoris staying as Defence Minister. SPD’s Lars Klingbeil will serve as Vice Chancellor and Finance Minister, and Aleander Dobrindt from CSU will head the Interior Ministry. CSU leader Markus Söder categorized the coalition as a “community of responsibility” and declared it to be “a strong team.”
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