Germany: CDU/CSU and SPD announce coalition government deal

Chancellor-in-waiting Friedrich Merz, whose conservative CDU/CSU emerged as the biggest party in Germany's February elections, has not yet finalized the new cabinet.

However, here are some of the key politicians in the running for the most crucial portfolios. The top briefs are all tipped to go to men, as well as the increasingly important portfolio of defense minister.  

Vice Chancellor and Finance Minister: Social Democrat co-leader Lars Klingbeil is widely expected to take the powerful posts of finance minister and vice-chancellor.

Holding such key positions could give him a good chance at a run for the chancellery himself, at some point down the line.

Relatively young at 47, he has become the dominant voice in the SPD since the election, taking the baton from outgoing Chancellor Olaf Scholz.

Foreign Minister: Some expect the job of Germany's top diplomat to go to Johann Wadephul, the 62-year-old deputy chair of the CDU/CSU parliamentary group. He is known for pushing to allow Ukraine to strike targets inside Russia with Western-supplied weapons. 

A strong contender to run the foreign ministry has also been Armin Laschet, 64, a former CDU party leader who was his party's chancellor candidate in the 2021 general election.

Interior Minister: The brief is to be held by the Bavarian Christian Social Union (CSU) and the foremost politician from the Bavarian conservative in Berlin is state group leader Alexander Dobrindt. Expectations are correspondingly high, even within his own party, that he will move into the cabinet as interior minister — the key ministry that the CSU will hold — although it's not clear whether he actually wants the job.

Defense Minister: The incumbent in the post, the SPD's Boris Pistorius, is expected to stay in the job, having won plaudits as defense minister both from other politicians and the German public. The 65-year-old has often been voted Germany's most popular politician in opinion polls, at a time of growing unease about the threat posed by a hostile Russia. Pistorius could also become Friedrich Merz's deputy, should Klingbeil decide against it.

What women might take ministerial posts?

The Social Democrats' Svenja Schulze could remain in post as Minister for Development and Klara Geywitz as Minister for Construction.

Sonja Eichwede, a member of the Bundestag from Brandenburg, is being discussed for the justice ministry. However, the current interior minister, Nancy Faeser, has also recently been considered for the position.

It is unclear whether the much-criticized SPD co-leader Saskia Esken will still claim a cabinet position. She has not yet commented on this.

Current Bundestag President Bärbel Bas could possibly expect a new position. She is being considered for party leader and parliamentary group leader, but also for a cabinet position and could replace party colleague Hubertus Heil as labor minister.

From the CDU, Schleswig-Holstein's education minister Karin Prien could become education minister at the national level.

Germany's center-left Social Democrats (SPD) can expect seven ministries in the new federal government, the 114-page coalition states — more individually than the conservative Christian Democrats (CDU), with six.

The CDU won 28.5% of the vote in Germany's February 23 election, while the SPD won 16.4%.

However, the CDU would crucially have the chancellory and together with Bavarian sister party the Christian Social Union (CSU) — with three ministries — the conservative bloc would also have nine ministries.

The document also stipulates the structure of the federal ministries and their distribution among the parties. 

Accordingly, in addition to the Chancellery, the CDU would receive six ministries: the Economic Affairs and Energy Ministry, the Foreign Office, and the family, health, transport, and digitalization portfolios.

The SPD is set to take defense, justice and consumer protection, labor and social affairs, environment including climate protection, development aid, plus housing, urban development, and construction.

The CSU appears set to claim the research, technology and space portfolio, plus agriculture and the key interior brief.

Germany's socialist Left Party says the coalition agreement between the Christian Democrats and Social Democrats takes the country in the completely wrong direction.

The party has sharply criticized the coalition agreement, saying it ignores problems such as high rents, high prices, the crumbling cohesion of society, and the destruction of the planet. 

"This coalition of ignorance and hopelessness presents itself as completely cowardly, lacking imagination, and without a social compass," said co-leader Ines Schwerdtner.

The Left Party's parliamentary group leader Heidi Reichinnek added that securing the pension level at 48% was not enough.

"This is nothing more than a perpetuation of old-age poverty," she said. "Instead of perpetuating this misery, the pension level must finally be increased back to 53 percent." She also criticized the migration policy plans.

Germany's Green Party has criticized the coalition agreement presented on Wednesday between the CDU/CSU and SPD as a "great disappointment" in light of current issues facing the world. 

Germany and the world are grappling with three central challenges — the collapse of ecosystems, the erosion of the rules-based global order, and the rise of right-wing extremism, said party co-leader Felix Banaszak.

The future governing coalition doesn't have "a hint of an answer" to key environmental challenges, he said, with climate targets being watered down, the end of combustion engines being called into question, and the phase-out of coal being delayed.

Against the backdrop of the recently approved €500 billion special fund, Banaszak also lamented a "lack of political will to use these billions."

Co-leader Franziska Brantner complained that the future government's plans were letting the younger generation down, citing the topics of pensions, education, and innovation. 

"Nothing has been specifically regulated; everything is being postponed," she added, referring to a series of planned expert commissions on various topics.

Alternative for Germany (AfD) leader Alice Weidel has sharply criticized the coalition agreement between the conservatives and center-left Social Democrats (SPD).

She accused chancellor-in-waiting Friedrich Merz's CDU/CSU bloc of deception, saying they "did not keep any of their election promises."

"The document bears the hallmarks of the election loser, the SPD."

The CDU/CSU, she said, had "ripped off and lied to the citizens with false election promises."

The "business as usual" principle is "in every sentence of the coalition agreement," Weidel said, particularly when it came to migration and finance. 

Too much taxpayer money was being "squandered on wrong and harmful policies," the AfD party and parliamentary group leader said. "Fiscal and tax policy is a disaster that will further exacerbate the crisis," Weidel continued.

In their 144-page coalition contract, Germany's two big centrist parties have vowed the following:

• Trade: Reaching a medium-term free trade deal with the United States. In the shorter term, the coalition parties aim to avoid trade conflicts with the US and focus on reducing import tariffs each way. Swift as possible EU agreements with Latin America's Mercosur bloc and Mexico.
• Energy and climate: Electricity prices to be lowered by at least 5 cents through a reduction in electricity tax and grid fees. An increase in gas power plant capacity. A legislative package to allow carbon capture and storage. The abolition of a controversial heating law to phase out fossil fuel heating.  A binding EU climate target to cut net emissions 90% by 2040.
• Borrowing and taxation: An expert commission on modernizing Germany's debt brake, which restricts public borrowing. A corporate tax rate reduction from 2028.  Significant lowering of sales tax on restaurant food.
• Labor: Tax-free overtime pay tax-free and tax benefits for those working beyond retirement age. A reform of unemployment benefits and stricter sanctions for those refusing to work. A minimum wage target of 15 euros per hour from 2026.
• Defense: Ramping up defense spending "significantly" to meet NATO targets for troops and weapons. A new form of military service, for now voluntary. Readiness of forces to be stepped up. Continued support of Ukraine. A law to speed up defense procurement and simplify procedures. Standardization of military equipment in cooperation with European partners.
• Migration: Suspension of family reunification for people with a so-called subsidiary protection status. An end to all federal admissions programs for refugees. Asylum seekers will be rejected at land borders. Germany to start deporting people to Syria and Afghanistan, starting with criminals and potentially dangerous persons.

Germany's chancellor-designate Friedrich Merz says the country's new government should be formed days after April 28.

Merz's Christian Democrats (CDU) will hold a small party conference on that day, he said. At the event, delegates will decide on the coalition agreement, and elections for chancellor could be held the following week.

After the parties formally approve the agreement in the coming weeks, "we can then get to work with a new federal government at the beginning of May," Merz told journalists.

Responding to questions after their speeches, the coalition partners were asked what their message would be to US President Donald Trump in the wake of trade tariffs imposed on the EU.

"A key message to Donald Trump is, Germany is back on track," said chancellor-in-waiting Friedrich Merz, replying in English to a question from DW political editor Michaela Kuefner.

Merz said Germany was ready to strengthen its defense spending, something Trump has maintained is necessary, but also that Berlin wanted to improve its competitiveness from the point of view of trade.

"That is also the European Union. And Germany will be once again a very strong partner in the European Union and we will bring the European Union forward," he said.

"I fully agree," Social Democrat co-leader Lars Klingbeil briefly added in English.

In his response, CSU leader Markus Söder quipped, "I'll be back," referring to the catchphrase of Arnold Schwarzenegger's character in the Terminator movies.

Chancellor-in-waiting Friedrich Merz said the coalition government would "largely end irregular migration," promising strict border controls and a "repatriation offensive" aimed at those living in the country illegally.

Social Democrat (SPD) co-leader Saskia Esken emphasized that, for many Germans, life had become harder and that the coalition must ensure a change of direction. 

"Life in Germany has become more complicated and strenuous" said Esken, who also spoke of "very serious and very trusting discussions" in recent weeks. 

Together, the SPD and the conservative CDU/CSU now want to restore "confidence" and "cohesion" in society, she explained.

The coalition would launch a "major offensive" to modernize the state and "make it more digital and efficient," Esken said at the presentation of the coalition agreement.

Christian Social Union leader Markus Söder said the coalition deal "wasn't easy — but it was worth it." 

"That was a tough nut to crack," Söder said, promising that the agreement was a "response to the problems of our time."

He said the new government would deliver a "fitness and modernization program for our country."

Söder described the coalition agreement as a "Germany Pact."

"It is a signal to the rest of the world that Germany is coming back," said the Bavarian state premier. He said the agreement was also a signal to the people of Germany. "We will take care of you," he added, saying taxes would be cut rather than raised.

Söder repeatedly addressed the sensitive topic of migration in his speech. "The many years of uncertainty are over," he says. "We are now returning to the time before 2015," he said, referring to the arrival of a large number of migrants seeking asylum in Germany under former Chancellor Angela Merkel.

Germany's likely next vice chancellor, Social Democrat (SPD) co-leader Lars Klingbeil,  has spoken warning against red tape that could hinder the coalition's program of investment, construction and modernization.

The future government must prioritize the common good,  he said, and it did not want to overwhelm people with regulations.

"Not everything needs to be regulated down to the smallest detail. The excavators need to work, and the fax machines in our country need to be disposed of," said Klingbeil.

He said the coming weeks and months would determine Germany's future role in the world, "and this has been a recurring theme throughout the negotiations."

"What counts in these times is a government that tackles the crucial issues correctly," said Klingbeil. 

Chancellor-in-waiting Friedrich Merz has said the parties would "jointly get what Germany urgently needs underway," and that the coalition would have the motto of "reform and invest."

Speaking about a recent amendment to Germany's constitution, or Basic Law, on the country's fiscal debt brake, Merz said he would have preferred to take another approach. Merz and his conservative bloc have faced criticism for saying they would not take on more debt before the February 23 election, but made the change to allow more borrowing afterward.

"Circumstances had made this approach necessary, which the remaining 'traffic light coalition' had played a key role in enabling," said Merz, referring to the previous three-way coalition of the Greens, center-left Social Democrats, and business-focused Free Democrats.

Merz particularly emphasized the positive mood during the coalition negotiations and thanked those with him on stage by name. He expressed confidence that they would "govern well together."

Christian Democrat leader Friedrich Merz, Bavaria's Christian Social Union leader Markus Söder and Social Democrat leaders Saskia Esken and Lars Klingbeil have appeared on stage for the “presentation of the joint coalition agreement."

Merz opened the speech, speaking of the intensive negotiations that have taken place.

"We have a strong plan in front of us with which we can jointly move our country forward again." 

He said the coalition agreement was a strong signal to the country's citizens. "And it is a sign to the European allies: Germany is getting a government capable of taking action," he said.

Germany's center-left Social Democrats (SPD) can expect seven ministries in the new federal government, according to an early report.

Meanwhile, the conservative Christian Democrats (CDU) is expected to have six and its Bavarian sister party the Christian Social Union (CSU) three.

The numbers were stipulated in the draft coalition agreement, an insider told the Reuters news agency ahead of the official coalition announcement. 

For the SPD, this would be one more ministry than in previous coalitions with the CDU. With responsibility for finance and defense, they will receive two key departments.

The Foreign Ministry is to be led by the CDU, according to the report, while the CSU's most important department would be the Interior Ministry.

Each party decides for itself which person will lead the ministries.

The SPD is also expected to take justice and consumer protection, labor and social affairs, environment including climate protection, development aid, plus housing, urban development, and construction.

In addition to the head of the Chancellery, the CDU would receive six ministries: the Economic Affairs and Energy Ministry, the Foreign Office, and the family, health, transport, and digitalization ministries.

The CSU appears set to claim the research, technology and space portfolio, plus agriculture and the interior brief.