A coalition deal in Germany has paved the way for conservative leader Friedrich Merz to become the country’s 10th chancellor since World War II. As part of the deal, outgoing Chancellor Olaf Scholz’s party, the Social Democrats (SPD), will join with Merz’s Christian Democratic Union (CDU).
Both parties in the agreement have ruled out governing with the far-right party Alternative for Germany (AfD).
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CDU, along with its Bavarian sister party the Christian Social Union (CSU), won Germany’s elections in February after garnering 28.6% of the vote, according to Germany’s international broadcaster Deutsche Welle (DW).
The AfD secured 20.8% of the vote. Meanwhile, Scholz’s SPD won just 16.4% of the vote, their worst result since World War II, according to the Associated Press (AP).
The coalition agreement was put to a vote among the SPD’s more than 358,000 members via an online ballot. More than half, 56%, of the party’s members voted on the deal, and of those who cast their ballots, 84.6% were in favor, the AP reported.
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CDU/CSU and SPD are looking to invest in Germany’s infrastructure, raise the minimum wage to $17.01 per hour and to cap rents, according to Reuters, which cited the coalition contract.
The coalition deal gives SPD several major positions, including the finance, justice and defense ministries, according to the AP. In total, SPD was able to secure seven ministry positions, DW reported.
Additionally, SPD leader Lars Klingbeil is set to become vice chancellor and finance minister — a key position as the country deals with the ramifications of President Donald Trump’s tariffs.
“In these very difficult times in global politics, we bear responsibility for our security, for economic growth, secure jobs and equal opportunities,” SPD General Secretary Matthias Miersch said, according to Reuters.
Merz celebrated SPD’s approval of the agreement in a post on X, which was translated by Reuters.
“The broad approval of our coalition agreement shows that the political center is capable of taking action and assuming responsibility. This clears the way for a strong government that will finally solve our country’s problems,” Merz wrote, according to a Reuters translation.
