Germany's CDU/CSU, SPD reach deal to form new govt

BERLIN -- Germany's conservative bloc CDU/CSU and the center-left Social Democratic Party (SPD) on Wednesday agreed on a coalition deal to form a new federal government after weeks of negotiation.

Following the coalition agreement, Friedrich Merz from CDU/CSU is expected to be elected chancellor next month.

Calling the agreement "a strong plan with which we can jointly move our country forward again," Merz said at a press conference on Wednesday afternoon that it is also a clear signal that Germany is getting a government capable of acting and strong in action.

Weeks ahead of the agreement, the CDU/CSU and the SPD had succeeded in amending the Basic Law to loosen the "debt brake" limits on infrastructure and national defense investments.

The future government will reform and invest to keep Germany stable, make it more secure, and make it economically stronger again, and Europe too can rely on Germany, Merz said.

The new coalition government will seek to implement measures such as lowering the corporate income tax and reducing the electricity tax to the European minimum level to improve the competitiveness of the German economy, according to Merz.

In addition, the new government will adopt a new course in migration policy, including measures of enhancing border controls, rejecting asylum seekers, and stepping up the efforts to deport illegal immigrants.

Immigration had become a key topic during Germany's federal election campaign earlier this year.

Germany is and remains a country of immigration, said Lars Klingbeil, co-leader of the SPD, adding that the country protects the rights of citizens with a migration background.

Klingbeil vowed to invest more in securing jobs, attracting talent and providing housing, as well as scrapping excessive bureaucracy to improve government efficiency.

On the US tariff measures, Merz urged a common European response, as well as efforts to restore Germany's competitiveness and create new jobs.

The key message to US President Donald Trump is that "Germany is back on track," he said, noting that Germany will fulfill its obligations in terms of defense, and it is willing to strengthen its own competitiveness.

"That is not just Germany," Merz added, stressing that Germany will again be a very strong partner within the European Union.