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Merz, SPD Conclude Exploratory Talks, Move Towards Coalition Government

Berlin, March 9, 2025 – The Europe Today: Friedrich Merz, the incoming chancellor of Germany, and Lars Klingbeil of the SPD have successfully completed exploratory talks following the February 23 elections and are now set to enter formal coalition negotiations.

Germany’s coalition government formation occurs in two phases—exploratory talks to assess potential alliances, followed by formal coalition negotiations to finalize a governing agreement.

The two parties are working against the clock to secure a coalition deal by next week, aiming to ease Germany’s borrowing limits and boost economic growth and military spending.

Merz Aims for Easter Coalition, Warns of European Security Risks

Merz, whose CDU/CSU bloc emerged victorious but without a majority, seeks to form a coalition by Easter. He has cautioned that Europe must prepare for a self-reliant future, as the U.S. under Donald Trump is no longer viewed as a dependable ally against Russia’s growing hostility.

The CDU/CSU and SPD have been negotiating key issues, including migration policies and welfare payments, after a fiercely contested election.

Key Policy Agreements

  • Migration Control: The coalition plans strict border policies, including the rejection of all undocumented migrants—a key demand of Merz to curb support for the far-right Alternative for Germany (AfD), which achieved a record 20% vote share.
  • Ukraine Support: Discussions continue on supplying Taurus missiles to Ukraine, a move opposed by outgoing Chancellor Olaf Scholz but supported by Merz under certain conditions.
  • Social Policies: The SPD secured commitments on key policies, including a €15-per-hour minimum wage and stable pensions.

Merz acknowledged the major challenges ahead, emphasizing the need for a strong coalition to navigate economic and geopolitical uncertainties. Klingbeil termed the agreement “an important first step” in rebuilding Germany’s stability.