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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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EU Must End ‘Naivety’ on Trade and Confront China’s Industrial Strategy, Says French Minister
France’s Minister for Foreign Trade, Nicolas Forissier, has called on the European Union to abandon what he described as “naivety” in its approach to global trade, urging a tougher stance on countries accused of distorting markets through industrial policy and trade practices.
Speaking in an interview with Euronews’ 12 Minutes With programme, Forissier said Europe must respond more firmly to what he described as the weaponisation of trade dependencies, warning that China in particular could damage its own long-term interests by undermining European industry.
“The Chinese have to understand that they won’t win anything if they destroy the European industry and then the European market, which is an essential market for them,” he said. “We must no longer be naive.”
His comments come as the European Commission prepares to hold an “orientation debate” next week on how to respond to a surge of low-cost Chinese imports. The discussion is expected to shape possible new trade defence measures, with further talks likely when EU leaders meet in Brussels in mid-June.
Forissier said the shift in thinking was not limited to China alone but applied to any country using commercial leverage to gain strategic advantage. “It is not only China,” he said. “It is all the countries that weaponise trade.”
Among the proposals under consideration is a requirement for EU companies to diversify supply chains, sourcing components from at least three different suppliers in order to reduce dependency on any single foreign market. Asked whether he supported such a measure, Forissier replied: “Yes, we have to.”
Other options include targeted tariffs on sensitive industries such as chemicals, alongside stronger use of anti-dumping and anti-subsidy tools to counter imports priced below domestic market levels. These measures are designed to address concerns over overcapacity in China’s industrial sector and its impact on European manufacturers.
The debate is taking place against a backdrop of widening trade imbalances. EU goods imports from China exceeded exports by €359.3 billion in 2025, marking an increase of nearly 20% compared with the previous year.
China has already warned it could retaliate if the bloc imposes new restrictions, raising concerns about potential escalation in trade tensions between two of the world’s largest economies.
France has repeatedly pushed for a more assertive European trade policy, arguing that state subsidies, export controls on raw materials and industrial overproduction in major economies are distorting global markets.
Forissier stressed that Europe must maintain open dialogue with Beijing while defending its own industrial base. “We try to respect the Chinese,” he said. “The Chinese have to respect us, and this is the message European institutions have to send.”
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