Merz Leads Coalition to Navigate Germany's Economic Storm

Friedrich Merz leads a coalition with SPD to tackle economic challenges in Germany amid a global trade war. The coalition aims for economic growth, improved defense, and migration control, pivoting from liberal policies. Despite facing AfD's rise, Merz plans significant reforms in economic and defense sectors.

In a significant political development, German conservative leader Friedrich Merz has successfully forged a coalition deal with the center-left Social Democrats (SPD). The coalition aims to revive Germany's economy amidst global trade tensions triggered by U.S. tariffs.

Merz, poised to become chancellor, emphasized increasing defense spending and economic competitiveness, while stressing the importance of German-U.S. relations. However, the coalition faces pressure from the far-right Alternative for Germany (AfD), which has topped recent polls.

Key policy agreements include tax cuts, energy price reductions, and a focus on the electric car industry, alongside a tougher migration stance. As Germany seeks to navigate economic and security challenges, Merz's leadership will be tested amidst these transformative reforms.

(With inputs from agencies.)