Coalition formed to tackle Germany's economic and political woes
The Christian Democratic parties, CDU and CSU, along with the SPD, signed a coalition agreement on Monday in Berlin, forming the programmatic basis for their joint government. The vote on CDU leader Friedrich Merz's candidacy for chancellor and the swearing-in of his government is scheduled for Tuesday.
The agreement was signed: for the CDU by Merz, for the SPD by both chairpersons Lars Klingbeil and Saskia Esken, and as a representative of the CSU by the Bavarian Prime Minister Markus Söder.
Before signing, Merz announced that the new government, if elected by the Bundestag, would immediately begin working to "change Germany for the better." - The government will provide the country with reforms and investments - he emphasised. He promised a greater international role for Germany, particularly in Europe.
Esken highlighted that one of the coalition's main tasks would be to combat the extreme right. - We must put an end to right-wing ghosts - she said.
The coalition partners have already announced their candidates for ministerial positions. The vice chancellor and finance minister will be SPD chairman Lars Klingbeil. Johann Wadephul from the CDU will take charge of the foreign ministry, and the interior ministry will go to the leading CSU politician Alexander Dobrindt. Social Democrat Boris Pistorius, currently the most popular German politician, will remain as defence minister.
The negotiations undertaken by the three parties after the Bundestag elections on 23 February concluded in early April. The agreement was then approved by all coalition partners. In an online referendum organised by the SPD among all party members, 84 percent of participants supported the agreement. The main tasks outlined in the 146-page agreement include overcoming the economic crisis and addressing illegal immigration.
The German economy has been in recession for three years. The tax reliefs for entrepreneurs announced by the new government are expected to aid economic recovery. Although the number of people applying for asylum is decreasing, German citizens still consider it too high.
In 2024, nearly 230,000 foreigners filed asylum requests, 100,000 fewer than the previous year. Illegal immigration remains a challenge, which is why the new government has announced stricter controls and the repatriation of individuals who do not have valid entry documents. The coalition partners have also pledged to strengthen relations with Poland and revive trilateral cooperation within the Weimar Triangle.
A challenge for the new government. Public sentiment hits rock bottom
Even before the formal establishment of the coalition, the three parties pushed through a constitutional change in the Bundestag allowing for unlimited increases in defence spending and the creation of a special fund for infrastructure investment totalling €500 billion.
The Christian Democratic parties won the parliamentary elections with 28.6 percent of the vote. The previous government's ruling Social Democrats suffered a significant defeat, securing only 16.4 percent, their worst post-war result. A CDU/CSU and SPD coalition was the only option to form a majority government through the democratic centre parties. Christian Democrats and Social Democrats rule out cooperation with the far-right Alternative for Germany (AfD), which secured second place with 20.8 percent.
The chancellor and his government face pessimistic public sentiment from the start. In the "Political Barometer" survey by ZDF television, 56 percent of respondents negatively assessed Merz's nomination for chancellor, while only 38 percent supported the decision. Support for the parties forming the coalition has fallen compared to election results. Currently, 27 percent wish to vote for the CDU/CSU and 15 percent for the SPD, indicating that if the elections were held this past Sunday, the coalition would not have a majority.
