Germany's Political Landscape Shifts: New Coalition to Lead

A new coalition agreement between Germany's conservative and centre-left parties is poised to end political stagnation, with Friedrich Merz expected to become the next Chancellor. Before he assumes office, the coalition requires approval. Recent legislative changes signal plans to stimulate the economy and increase defense spending.

Germany is set for a change in leadership as conservative and centre-left parties have come to an agreement to form a new government. This coalition ends months of political inertia, marking a significant shift in Europe's largest economy.

Friedrich Merz of the Christian Democratic Union is expected to succeed Olaf Scholz as Germany's leader. The announcement came after the Union bloc, which Merz leads, emerged victorious in the country's recent election. A news conference is scheduled for Wednesday to outline the coalition's plans.

The coalition aims to make transformative economic reforms, having already pushed measures in parliament last month to relax debt constraints and establish a substantial infrastructure fund. However, before Merz can officially take office, the agreement needs to be ratified by both party memberships.

(With inputs from agencies.)