Merz Unites CDU, CSU, and SPD to Form New German Government

A new German government will form today when Christian Democratic Union (CDU) leaders join forces with Christian Social Union (CSU) members and Social Democrats (SPD). Since becoming chancellor Friedrich Merz has spent numerous weeks organizing his administration to tackle Germany's economic situation while prepared to prevent potential global trade conflicts.

The agreement should be locked in after a morning meeting at 9:30 a.m. (0730 GMT), according to people close to the discussions. Merz and SPD co-leader Lars Klingbeil are planning a press conference later today, assuming they can iron out the final details. The plan includes tax cuts for regular folks and small businesses, cheaper energy bills to help companies stay competitive, and a big push to support electric car makers. They’re also talking about setting up a group to rethink Germany’s strict “debt brake” rules, which some say have held the economy back.

Things feel extra urgent because of new U.S. tariffs under President Donald Trump, which could hit Germany’s export-driven economy hard and maybe even push it into a recession. Merz has promised to send a “strong and clear message” to Germans and Europe, including more money for defense and a pitch for a U.S.-EU trade deal. Speaking directly to the White House in English, he said, “Germany is back on track.”

Immigration is another hot topic. The new coalition wants stricter rules, like turning people away at the border and slowing down citizenship processes, partly in response to the growing popularity of the far-right Alternative for Germany (AfD) , a group everyone’s agreed to keep out of power. With Germany facing uncertain times, this coalition, set to start working in May, could shape how Europe handles a changing world.