Germany's Political Unification Amid Economic Turbulence

Germany's conservatives and the Social Democrats are finalizing a coalition agreement to respond to economic challenges, as financial market chaos and U.S. trade tensions intensify. The SPD and CDU/CSU parties aim to overcome differences, support free trade, and bolster defense spending against global uncertainties.

Germany's conservative and center-left parties are closing in on a coalition deal, anticipated by midday Wednesday. Insiders reveal that discussions led by conservative Friedrich Merz and Social Democrat leader Lars Klingbeil seek to resolve remaining issues.

A press conference is planned post-agreement, prompted by the financial instability and trade war hurdles fueled by U.S. President Trump's tariffs, threatening global economic stability.

SPD Finance Minister Joerg Kukies emphasized the recession threat, urging governmental readiness. The coalition backs EU-U.S. free trade and increased defense, reacting to a volatile Russia and economic pressures.

(With inputs from agencies.)