Friedrich Merz, the leader of Germany's Christian Democratic Union CDU, left, and the co-leaders of the Social Democratic Party SPD, Lars Klingbeil, center, and Saskia Esken arrive to meet for talks on forming a coalition government at the SPD headquarters in Berlin, Friday March 28, 2025. (Odd Andersen/Pool via AP)
From left, Parliamentary Group Leader of the Bavarian conservative Christian Social Union (CSU) party Alexander Dobrindt, leader of Germany's Christian Democratic Union (CDU) Friedrich Merz and the co-leader of the Social Democratic Party (SPD) Saskia Esken prior to coalition talks between SPD CDU/CSU at the SPD headquarters in Berlin, Friday March 28, 2025. (Odd Andersen/Pool via AP)
Friedrich Merz, CDU/CSU parliamentary group leader in the Bundestag and CDU federal chairman, makes a statement after the parliamentary group meeting in the Bundestag, Berlin, Friday, March 14, 2025. (Michael Kappeler/dpa via AP)
CDU leader Friedrich Merz, left, chairman of Bavarian Christian Social Union party Markus Soeder, center left, and the co-leaders of Germany's Social Democratic Party Lars Klingbeil, top right, and Saskia Esken arrive to attend coalition talks between SPD CDU/CSU at the SPD headquarters in Berlin, Friday March 28, 2025. (Odd Andersen/Pool via AP)
Friedrich Merz, CDU/CSU parliamentary group leader in the Bundestag and CDU federal chairman, speaks at the start of the parliamentary group meeting in the Bundestag, Berlin, Friday, March 14, 2025. (Michael Kappeler/dpa via AP)
Friedrich Merz, the leader of Germany's Christian Democratic Union CDU, left, and the co-leaders of the Social Democratic Party SPD, Lars Klingbeil, center, and Saskia Esken arrive to meet for talks on forming a coalition government at the SPD headquarters in Berlin, Friday March 28, 2025. (Odd Andersen/Pool via AP)
From left, Parliamentary Group Leader of the Bavarian conservative Christian Social Union (CSU) party Alexander Dobrindt, leader of Germany's Christian Democratic Union (CDU) Friedrich Merz and the co-leader of the Social Democratic Party (SPD) Saskia Esken prior to coalition talks between SPD CDU/CSU at the SPD headquarters in Berlin, Friday March 28, 2025. (Odd Andersen/Pool via AP)
Friedrich Merz, CDU/CSU parliamentary group leader in the Bundestag and CDU federal chairman, makes a statement after the parliamentary group meeting in the Bundestag, Berlin, Friday, March 14, 2025. (Michael Kappeler/dpa via AP)
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CDU leader Friedrich Merz, left, chairman of Bavarian Christian Social Union party Markus Soeder, center left, and the co-leaders of Germany's Social Democratic Party Lars Klingbeil, top right, and Saskia Esken arrive to attend coalition talks between SPD CDU/CSU at the SPD headquarters in Berlin, Friday March 28, 2025. (Odd Andersen/Pool via AP)
Friedrich Merz, CDU/CSU parliamentary group leader in the Bundestag and CDU federal chairman, speaks at the start of the parliamentary group meeting in the Bundestag, Berlin, Friday, March 14, 2025. (Michael Kappeler/dpa via AP)
BERLIN (AP) — Conservative and center-left parties reached a deal to form a new German government on Wednesday after weeks of negotiations, paving the way for new leadership in Europe’s biggest economy after months of political drift.
, the leader of the center-right Christian Democratic Union, is expected to become Germany’s next leader under the agreement, replacing outgoing Chancellor Olaf Scholz. The parties involved sent an invitation to a news conference on the coalition deal at 3 p.m. (1300 GMT).
Merz’s two-party Union bloc emerged as the strongest force from on Feb. 23. Merz turned to the Social Democrats, Scholz’s center-left party, to put together a coalition with a parliamentary majority.
The wait isn't quite over yet
It’s still going to be a little while before parliament can elect Merz as chancellor, perhaps in early May. Before that can happen, the coalition deal will need approval in a ballot of the Social Democrats’ membership and by a convention of Merz’s CDU.
Details of the agreement weren’t immediately available.
But already last month, the two sides through parliament to enable higher defense spending by loosening strict rules on incurring debt and to set up a huge infrastructure fund that’s aimed at boosting .
That was an about-turn for Merz, whose party had spoken out against running up new debt before the election without entirely closing the door to future changes to Germany's self-imposed “debt brake.â€
The election took place seven months earlier than planned after Scholz’s unpopular coalition , three years into a term that was increasingly marred by infighting and widespread discontent. Germany, the 27-nation European Union's most populous member, has been in political limbo since then.
Pressure from abroad and at home
The caused by U.S. President Donald Trump’s announcement of sweeping tariffs added to pressure for Merz’s Union and the Social Democrats to bring their coalition talks to a conclusion.
The tariffs threaten to add to the woes of an export-heavy economy that shrank for the past two years, and will be a central task for the new government.
Increasing doubts about the U.S. commitment to European allies also played into the prospective coalition's decision to enable heftier defense spending. Merz said that Germany and Europe must quickly strengthen their defense capability and that “‘whatever it takes’ must also go for our defense now.â€
Another factor in the haste to reach an agreement was a decline for the Union in the opinion polls, showing support slipping from its election showing, while the far-right , which finished a strong second in February, gained as the political vacuum persisted.
The prospective new coalition brings together what have been post-World War II Germany’s traditional big parties, but the Union’s election-winning performance in February was lackluster and the Social Democrats dropped to their worst postwar showing in a national .
Together, they have 328 seats in the 630-member lower house of parliament, the Bundestag.
