Germany is on the verge of forming a new coalition government led by Merz's CDU/CSU and the SPD after extensive exploratory talks. The parties acknowledge significant challenges, particularly related to international dynamics and EU stability. Major agreements include a focus on combating irregular immigration and a significant economic recovery plan that involves unprecedented investments in defense and infrastructure, breaking Germany's traditional hesitation regarding large-scale debt. The goal is to establish a functional government by mid-April after months of uncertainty.
The plan is for Germany to have a government in place by mid-April that would end around half a year of political paralysis after the three-way coalition of outgoing Chancellor Scholz imploded in early November.
Merz said both sides have agreed on tough new steps against irregular immigration, while securing assurances on key SPD demands such as a 15-euro minimum wage.
Even as talks are set to continue and some hurdles remain, the likely future governing allies have already surprised European partners with their plan to spend hundreds of billions of euros.
Merz has stated that rebuilding Berlin's standing in Europe requires a response to the sweeping changes driven by US President Donald Trump.
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