Conservative Coalition Champions Change in Germany Amid Rising Tensions

Friedrich Merz's German conservatives form a coalition with the SPD to boost economic growth and respond to global trade wars. With increased defense spending and stricter migration policies, the coalition aims to steer Germany through economic struggles as alternative far-right parties gain popularity.

German conservatives led by Friedrich Merz finalized a coalition agreement with the centre-left Social Democrats (SPD) on Wednesday. This strategic alliance seeks to rejuvenate Europe's largest economy amidst fears of a looming recession due to a global trade war triggered by U.S. tariffs.

The urgency for a coalition is heightened as Merz faces the challenge of unpopular domestic policies and an unpredictable global market. He has committed to bolstering defense and aiding businesses while shifting away from the liberal migration policies set by predecessor Angela Merkel.

The coalition's viability still hinges on a vote by SPD members. This political shift could steer the country through economic hurdles while countering the rising influence of the far-right Alternative for Germany. Despite criticism, Merz remains focused on his economic revitalization agenda to secure Germany's stability.

(With inputs from agencies.)