Germany Nears Historic Coalition: Conservatives and Social Democrats Forge New Government

Germany's conservatives and Social Democrats are on the verge of forming a coalition government. Negotiations between Friedrich Merz and Lars Klingbeil's teams are set to conclude. The need for a timely agreement is amplified by global economic tensions, raising concerns of a recession.

Germany's conservatives and the centre-left Social Democrats are poised to finalize a coalition government, with negotiations expected to conclude by midday Wednesday, insiders have informed Reuters.

The alliance, led by conservative election victor Friedrich Merz and SPD's Lars Klingbeil, plans to tackle the remaining hurdles in their agreement during the morning meeting, scheduled for 9:30 a.m. (0730 GMT).

A joint press briefing is set for the afternoon, conditional on the successful completion of talks, as geopolitical tensions and economic uncertainties pressurize a swift conclusion.

(With inputs from agencies.)