Germany's Coalition Gamble: SPD Votes on Political Future

Germany's Social Democrats (SPD) vote on a coalition treaty with CDU/CSU conservatives, crucial for forming a new government in Europe's largest economy. The majority government seeks economic revival amid trade tensions. SPD's concessions face internal opposition, particularly from its Jusos youth wing.

On Wednesday, Germany's Social Democrats (SPD) will reveal whether their members have approved a coalition treaty with the CDU/CSU conservatives. This decision is key to forming a new government in Germany, Europe's economic powerhouse. The agreement is the only feasible option for a majority government following significant losses by both major parties in February's federal election. Both parties have dismissed collaboration with the far-right Alternative for Germany (AfD), despite its historic surge to second place.

Over the previous fortnight, SPD members have been voting on the coalition treaty, crafted by the leaders of both parties. Approval is anticipated, paving the way for conservative leader Friedrich Merz to assume the chancellorship on May 6. A rejection would plunge German politics into chaos, just months after the collapse of the previous majority government. Key priorities for the new administration include revitalizing Germany's shrinking economy, now facing potential threats from US-imposed tariffs under President Trump.

Despite a record low of 16.4% electoral support, the SPD has negotiated crucial victories in the coalition. Key agreements include significant infrastructure investments, a wage increase to €15 per hour, maintaining pension levels, and renting caps. However, concessions on stricter immigration policies and budget cuts have sparked internal dissent, notably from the Jusos youth wing, urging a rejection of the coalition. A negative outcome could lead to renegotiations, minority government formation, or new elections.

(With inputs from agencies.)