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Germany’s CDU-CSU and SPD Reach Coalition Deal, Paving Way for Friedrich Merz to Become Chancellor
Germany is set to usher in a new era of leadership as the centre-right Christian Democratic Union (CDU) and its Bavarian sister party, the Christian Social Union (CSU), have reached a coalition agreement with the centre-left Social Democratic Party (SPD). The landmark deal follows weeks of negotiations and will be formally presented in a joint press conference on Wednesday afternoon.
Under the agreement, CDU leader Friedrich Merz is expected to become Germany’s next chancellor, succeeding Olaf Scholz and marking a significant political shift in Europe’s largest economy. The coalition ends a period of uncertainty and political drift that followed the closely watched federal elections held in February.
Merz’s CDU-CSU Union bloc emerged as the strongest force in the elections, but without a clear majority. In the aftermath, Merz initiated talks with the SPD to secure a stable parliamentary coalition capable of forming a government.
“We have reached a comprehensive agreement that reflects both our common goals and the diverse perspectives of our parties,” Merz said in a brief statement ahead of the official announcement. “Our focus now is on delivering strong, effective governance for Germany at home and abroad.”
The three parties are scheduled to unveil the full coalition deal during a press conference at 3:00 p.m. Central European Time. The agreement will outline the policy framework and key cabinet positions, and is expected to prioritize economic stability, energy transition, digital infrastructure, and Germany’s role in the European Union.
The SPD, led by outgoing Chancellor Scholz, has signaled its willingness to compromise to ensure political stability. Although the party suffered losses in the recent elections, it remains a major force in German politics and will likely retain several key ministries in the new coalition government.
“The people of Germany expect us to act responsibly and work together,” said an SPD spokesperson. “This coalition is the result of constructive dialogue and mutual respect.”
The coalition formation marks a return to a so-called “grand coalition,” reminiscent of earlier CDU-SPD partnerships that governed Germany for much of the past two decades. However, political analysts note that this iteration is taking shape under markedly different global and domestic conditions — including ongoing economic challenges, shifting geopolitical dynamics, and evolving voter expectations.
With the coalition agreement now in place, the Bundestag is expected to confirm Merz’s appointment as chancellor in the coming days. Once sworn in, he will face the immediate challenge of navigating Germany through global economic uncertainties and accelerating the country’s energy transition.
As anticipation builds for the official announcement, many observers see the coalition as a stabilizing force in an increasingly polarized European political landscape — one that could provide fresh momentum for Germany on both the domestic and international fronts.
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Trump Weighs Troop Cuts in Spain and Italy Amid Growing Rift Over Iran War
President Donald Trump said on Friday that he is considering reducing the US military presence in Spain and Italy, widening a dispute with key NATO allies over their opposition to the ongoing war with Iran.
Speaking to reporters in the Oval Office, Trump suggested both countries had failed to adequately support Washington’s military campaign in the Middle East.
“Yeah, probably, I probably will. Why shouldn’t I?” Trump said when asked whether he would withdraw troops from the two countries. He added that Italy “has not been of any help” and described Spain as “absolutely horrible.”
The comments came just one day after Trump floated a similar proposal regarding Germany, following criticism from German Chancellor Friedrich Merz over the administration’s handling of the Iran conflict.
Trump has repeatedly argued that the US-led campaign against Iran serves the security interests of the entire Western alliance. He has expressed frustration that several NATO members have not provided stronger military or political backing, particularly in efforts to counter Iran and reopen the Strait of Hormuz.
According to the latest Pentagon figures, the United States has about 36,000 troops stationed in Germany, roughly 12,600 in Italy and nearly 3,800 in Spain. While Trump did not specify the scale of any potential reductions, reports in US media suggest the cuts under consideration could be substantial.
Tensions with Italy have grown in recent weeks after Prime Minister Giorgia Meloni publicly questioned the war. Trump, once a close ally of the Italian leader, accused her of lacking the courage to fully support the campaign.
Relations with Spain have been strained for longer. Disagreements initially emerged over Madrid’s stance on the war in Gaza and later expanded to include defence spending and NATO commitments. Spain has resisted Trump’s push for alliance members to raise defence spending to 5 per cent of gross domestic product.
Prime Minister Pedro Sánchez has said Spain will only increase military spending when it aligns with national interests. That position has drawn repeated criticism from Washington.
The Trump administration has previously threatened trade measures against Spain and has even raised the possibility of suspending the country from NATO. Reports last week indicated that such discussions have resurfaced amid Spain’s refusal to support the Iran campaign.
The diplomatic tensions come as the war enters its third month, with no clear end in sight. The conflict has disrupted global energy markets, especially after the closure of the Strait of Hormuz. Brent crude settled at around $114 a barrel on Friday, sharply higher than the roughly $70 level seen before the conflict began.
Trump’s latest remarks are likely to deepen divisions within NATO at a time when alliance unity is already under strain.
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Trump Threatens Troop Reduction in Germany Amid Dispute With Chancellor Merz
US President Donald Trump has suggested that the United States could reduce its military presence in Germany, escalating tensions with German Chancellor Friedrich Merz over the handling of the conflict involving Iran.
In a social media post on Wednesday, Trump said Washington was reviewing the possibility of withdrawing some American troops from Germany, with a decision expected soon. The announcement comes amid a growing public disagreement between the two leaders over US strategy in the Middle East.
“The United States is studying and reviewing the possible reduction of troops in Germany,” Trump wrote, signalling that the longstanding American military footprint in Europe’s largest economy could once again be under scrutiny.
Germany hosts some of the most important US military facilities outside the United States, including Ramstein Air Base, the headquarters of US European Command and US Africa Command, and Landstuhl Regional Medical Center, the largest American military hospital abroad.
Trump’s latest warning follows comments by Merz earlier this week, in which the German leader said Washington was being “humiliated” by Iran and questioned the effectiveness of the US approach to the conflict. Merz has repeatedly called for a clearer strategy and a diplomatic resolution to the crisis.
Despite the sharp exchange, Merz said on Wednesday that his personal relationship with Trump remained strong. He added, however, that he had harboured concerns from the outset about the military campaign against Iran.
The two leaders met at the White House in March, shortly after the United States and Israel launched strikes on Iranian targets. At the time, Merz said Germany was prepared to work closely with Washington on future regional strategy, while also warning that a prolonged conflict could inflict serious damage on the global economy.
That concern has intensified as the closure of the Strait of Hormuz continues to disrupt global energy markets. The vital waterway, through which about one-fifth of the world’s oil supply normally passes, has remained effectively shut since fighting began in late February.
“We are suffering considerably in Germany and in Europe from the consequences of the closure of the Strait of Hormuz,” Merz said, urging all sides to seek a resolution.
Trump, however, has shown increasing frustration with Germany’s stance. In a post on Tuesday, he criticised Merz’s remarks on Iran and accused the chancellor of misunderstanding the threat posed by Tehran’s nuclear ambitions.
This is not the first time Trump has threatened to reduce US troop levels in Germany. During his first term, he announced plans to withdraw nearly 10,000 troops, citing Berlin’s defence spending. That proposal was later halted by the Biden administration.
Any renewed reduction would likely raise fresh questions about US commitment to NATO and European security at a time of heightened global instability.
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