Germany’s New Era: Merz promises reforms after coalition signed

The CDU/CSU and SPD have signed their coalition agreement one day before the planned takeover of government. Chancellor-designate Friedrich Merz (CDU) signed the 144-page agreement entitled “Responsibility for Germany” on Monday in Berlin together with the other party leaders of the CSU and SPD. On Tuesday, Merz is to be elected Chancellor of the new black-red government in the Bundestag.

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Merz announced a government “that is determined to move Germany forward with reforms and investments”. The CDU leader assured that he wanted this government to “take the concerns of the people in this country seriously”. CSU leader Markus Söder emphasized with regard to skepticism towards the new government that it must now “convince through performance” and start “full steam ahead”.

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SPD leader Lars Klingbeil said that the priority now had to be to strengthen the economy, with relief coming afterwards. His co-chair Saskia Esken emphasized that the aim must also be to restore “trust in democracy”. To achieve this, people must feel “visibly” represented by this government.
In particular, the coalition agreement provides for the tightening of migration policy demanded by the CDU/CSU, including the rejection of asylum seekers at the borders, as well as a reform of the citizens' allowance and investment incentives for companies. Important for the SPD are agreements to stabilize pension levels and a planned reduction in income tax for small and medium-sized incomes in around two years' time. However, all of the new government's plans are expressly “subject to financing”.

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This morning, the SPD had also announced its ministers for the new government. As previously announced, SPD leader Klingbeil will become Finance Minister and Vice-Chancellor, Boris Pistorius will remain as Defense Minister and the former Bundestag President will take over the Ministry of Labor and Social Affairs. The other four portfolios will go to Verena Hubertz (Construction), Stefanie Hubig (Justice and Consumer Protection), Reem Alabali-Radovan (Development) and Carsten Schneider (Environment).

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The SPD has declared its intention to carry out a "generational change" with its government team following the historically poor result in the Bundestag elections. The previous co-leader of the party, Saskia Esken, who has been criticized in parts of the party for months, was not included.
In the afternoon, the CDU/CSU and SPD will also be reshuffling in parliament. In the CDU/CSU, former Federal Health Minister Jens Spahn is to take over from Merz as leader of the CDU/CSU parliamentary group. In the SPD, former Secretary General Matthias Miersch is the likely successor to party leader Klingbeil at the head of the parliamentary group.

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Friedrich Merz is due to be elected Federal Chancellor in the Bundestag on Tuesday. The new ministers will then also be sworn in. On Monday evening, the previous Chancellor Olaf Scholz (SPD) will be given a grand send-off in the Berlin Ministry of Defense.