Germany is set to have a new chancellor, Friedrich Merz, following a coalition agreement between the conservative Christian Democratic Union (CDU) and the Social Democrats (SPD), led by outgoing Chancellor Olaf Scholz. The coalition excludes any involvement with the far-right Alternative for Germany (AfD), emphasizing a centrist government. The CDU/CSU won the elections with 28.6% of the vote, while the SPD secured only 16.4%, marking their worst performance since World War II. The SPD, although having a lower vote share, gains significant influence by obtaining key ministries such as finance, justice, and defense, with Lars Klingbeil set to become vice chancellor and finance minister. This coalition aims to address pressing issues like infrastructure investment, wage increases, and rent caps, showcasing a strong government ready to tackle national challenges under Merz's leadership.

Friedrich Merz is poised to become Germany's 10th chancellor post-World War II, following a coalition agreement between his Christian Democratic Union and the Social Democrats.

The coalition explicitly excludes collaboration with the far-right Alternative for Germany (AfD), reinforcing a centrist political stance.

In the February elections, the CDU/CSU won 28.6% of votes, while the SPD, under Olaf Scholz, garnered just 16.4%, their worst result since World War II.

Despite their poor electoral performance, the SPD secured key governmental roles, including the finance, justice, and defense ministries, and will influence the country's economic policies.

Lars Klingbeil, the SPD leader, is set to take on the roles of vice chancellor and finance minister, pivotal positions amid global economic uncertainties, including those arising from Trump's tariffs.

The coalition agreement includes plans to invest in infrastructure, raise the minimum wage to $17.01 per hour, and cap rents, reflecting their commitment to addressing domestic socioeconomic issues.

The broad approval of the coalition agreement among SPD members highlights the party's willingness to cooperate for a stable and effective government, as celebrated by Merz in public statements.