Germany: Discussions on forming new coalition government in Germany concluded

Friedrich Merz’s conservative Christian Democratic Union (CDU) has concluded the first stage of talks on forming a coalition government with the Social Democrats (SPD), Merz and other party officials said Saturday.

The winner of the recent parliamentary elections said the two parties wanted to start talks on forming a coalition government, adding that the CDU would decide on Monday whether to start the second and final stage of talks.

Coalition governments, which is common in Germany, are usually formed in two stages, the first being exploratory talks before formal talks.

According to Merz, his conservative CDU/CSU bloc has agreed with SPD leaders on common principles on immigration, the economy and industry.

“In coordination with our European neighbors, we will return people at our common border, including asylum seekers,” Merz said.

Earlier this week, potential partners in the next government said they would seek to create a 500 Euro billion fund to finance spending on Germany’s crumbling infrastructure over the next decade in a bid to revive Europe’s largest economy.

In 2024, the German economy shrank for the second year in a row as competition from China eroded the country’s traditional exports of industrial machinery and cars and worried consumers cut back on spending.

The CDU/SPD alliance is seeking to put the economy back on a steady growth path.

They have also said they would seek to ease the country’s debt rules to allow for increased defense spending, an issue of increasing importance as doubts grow about Washington’s commitment to European allies.

Merz reiterated this on Saturday, saying there was a huge sense of urgency, especially with regard to the German military budget.

Merz, the likely new German chancellor, hopes to form a coalition by April 20.

With the United States no longer seen as a reliable ally under Trump, Merz has warned that five minutes to midnight is five minutes to midnight for Europe to stand alone against Russia.

However, the CDU/CSU and SPD bloc needs the support of the Greens to pass the proposals.

Merz said detailed talks with the Greens would take place next week.