BERLIN: Three parties have agreed to form coalition government after parliamentary elections in Germany. The Christian Democratic Union (CDU), the Christian Social Union (CSU), and the Social Democratic Party of Germany (SPD) will form the government.
Christian Democratic Union leader Friedrich Merz announced the agreement at a press conference. He said that a joint document has been prepared that will form the basis for coalition government negotiations.
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The new government is expected to take large-scale measures for economic development.
Merz’s Christian Democratic Union (CDU) and its Bavaria-only sister party, the Christian Social Union (CSU) will now move to formal negotiations to form a government with the center-left Social Democrats (SPD) of outgoing chancellor Olaf Scholz, the parties agreed.
Merz is expected to be Germany’s next chancellor and has previously spoken of plans to revive Europe’s top economy and its armed forces after US President Donald Trump rocked trans-Atlantic relations by casting doubt on the future strength of the NATO alliance.
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Speaking at a news conference in Berlin with Lars Klingbeil, co-leader and parliamentary group leader of the SPD, and other leaders, Merz said agreement had been reached on a whole range of substantive issues.
They include a plan to turn away undocumented migrants and asylum seekers at the land borders, in coordination with neighboring countries.
Klingbeil said that the SPD was able to ensure that the recent reform of Germany’s citizenship law, allowing shorter eligibility timeframes, would remain in place.
The exploratory talks also focused in part on tax policy, with plans to reduce the burden on middle-class households, cuts to energy bills and a permanent reduction in the Value Added Tax (VAT) on food in restaurants.
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Klingbeil said his party had won assurances on key demands, such as a €15 ($16) per-hour minimum wage and stable pensions.
Merz added that a joint paper should be the basis for formal coalition negotiations, which could begin next week if necessary.
He said both sides shared “the conviction that we have a great task ahead of us, that we will soon need a new government in Germany with a parliamentary majority.”
Referring to Trump’s threatened tariffs on imports from the EU and intense pressure on Ukraine to reach a peace deal with Russia, Merz said both sides were “aware of the great challenge we are facing — above all the international situation.”
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Merz has set the goal of concluding negotiations by Easter.
In Germany, coalition governments are typically formed in two phases, with parties first holding exploratory talks and then entering into formal coalition talks.
The two parties were, meanwhile, racing for a preliminary deal before next week when they hope to push a loosening of Germany’s borrowing limits through parliament to revive growth in Europe’s largest economy and boost military spending.
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The CDU/CSU won the parliamentary elections on February 23 with 28.5 per cent. The SPD came in third with 16.4 per cent, behind the far-right Alternative for Germany(AfD).
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The AfD has charged Merz was “breaking his election promises and surrendering to the SPD’s debt madness.”
The party’s parliamentary group leaders Alice Weidel and Tino Chrupalla said Merz has “only received vague promises and formulaic compromises in migration policy, full of reservations and backdoors.”
The AfD doubled its voter support to 20.8 per cent in February’s election, making it the second-largest power in the Bundestag. All parties have ruled out working with the AfD to form a government.
Felix Banaszak, the co-leader of Germany’s Green Party, whose approval for the huge spending hike is needed, warned that agreement was now further away as a result of Saturday’s announcement.
Other criticism came from the Socialist Left Party, which said that the working paper was merely “business as usual” from Germany’s main parties.
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“The majority of society can only continue to watch as politics is decided over their heads and against their interests,” said the Left’s parliamentary group leaders Heidi Reichinnek and Sören Pellmann. “Key issues such as housing, health, strengthening families, equal living conditions between the East and West, and affordable food were negotiated in passing or not even mentioned.” The Greens had garnered 11.6 per cent of the vote, whereas the Left Party received 8.8 per cent.