Germany’s conservatives and the Social Democrats agreed to deepen talks over forming a new government, a step forward as pressure builds on Chancellor-in-waiting Friedrich Merz to implement sweeping reforms.
German conservatives and Social Democrats are deepening talks to form a new government, aiming to implement reforms such as tightened border controls, support for German industry through lower energy costs and taxes, middle-class tax relief, investment incentives, and revived electric car purchase incentives. Both parties will seek approval from their boards to enter formal coalition negotiations, with the SPD giving its members the final say. CDU leader Merz aims for a coalition agreement by Easter, but the start of the government could be delayed until May. Merz also seeks a broader agreement to detach defense spending from borrowing limits and establish an infrastructure fund, requiring support from conservatives, Social Democrats, and Greens.
