Merz's Coalition: A New Chapter in Germany's Political Landscape

German conservatives, led by Friedrich Merz, have formed a coalition with the SPD to stimulate economic growth amid global trade tensions. This agreement must be ratified by SPD's membership and marks a shift in Germany's immigration policy post-Merkel.

In a significant political development, German conservatives under leader Friedrich Merz have secured a coalition deal with the centre-left Social Democrats (SPD). This comes at a critical juncture as Europe's largest economy prepares to counter the threat of a global trade recession.

The urgency to finalize the coalition intensified with escalating trade tensions, following former U.S. President Donald Trump's imposition of extensive import tariffs. Merz, critical of the U.S. as an unreliable ally, aims to increase defense spending to address threats like hostile Russian actions, while also supporting struggling businesses.

Furthermore, the coalition embodies a shift from the liberal immigration policies of former chancellor Angela Merkel, signaling a tougher stance on migration. The agreement awaits ratification from SPD members to proceed, potentially restoring conservative leadership after Olaf Scholz's interim tenure.

(With inputs from agencies.)