German coalition deal signed on eve of Merz govt launch

BERLIN: The conservatives of Germany’s designated chancellor Friedrich Merz and the centre-left Social Democrats formally signed their coalition contract on Monday, on the eve of launching their new government.

Merz, 69, is on Tuesday set to be sworn in as the new leader of Europe’s biggest economy, ending half a year of political paralysis in Berlin.

The 144-page coalition contract entitled “Responsibility for Germany” lays out a policy roadmap for the next four years for the coalition of the country’s two traditional big-tent parties.

The CDU/CSU alliance of Merz and their future junior partners the Social Democrats (SPD) have vowed to revive the ailing economy and rebuild the military at a time when US President Donald Trump has cast doubt on the future of transatlantic security and trade ties.

Merz has also vowed to curb irregular migration and halt the rise of the anti-immigration Alternative for Germany (AfD) party, which took second place in February’s snap general election.

The AfD was Friday designated a “right-wing extremist” party by Germany’s domestic intelligence service — a move that has stoked a fresh row with the Trump administration, and against which the AfD launched legal action on Monday.

Merz, who boasts a strong business background but has no experience in a government leadership post, at Monday’s signing ceremony pledged “strong, well-planned and dependable governance”.

“We live in times of profound change, of profound upheaval … and of great uncertainty, and that is why we know that it is our historic obligation to lead this coalition to success,” he said.

The chancellor-in-waiting said the incoming government “is determined to move Germany forward with reforms and investments” and also promised “a government whose voice is heard in Europe and the world”.

The SPD’s Lars Klingbeil, the designated vice chancellor and finance minister, said that “the new government needs real teamwork more than ever”.

“We want to lead Germany back to where it belongs, namely forward.”

The outgoing coalition government of SPD Chancellor Olaf Scholz collapsed last November 6, the day Trump was reelected to the White House.

His SPD has since agreed to serve as junior partners to the centre-right alliance of Merz’s Christian Democrats (CDU) and their Bavarian allies the CSU.

Scholz himself will not be part of the new cabinet but stay on in parliament as a lawmaker.