Germany’s new political coalition between the center-right Christian Democratic Union (CDU) and its Bavarian counterpart, the Christian Social Union (CSU), together with the center-left Social Democratic Party (SPD), marks a significant attempt to stabilize both domestic governance and European unity amidst a fraught geopolitical landscape.
Formed in April 2025 within a remarkable span of just 45 days following the February 2025 federal elections, this coalition—titled “Responsibility for Germany”—reflects a pragmatic urgency prompted by external pressures, notably the United States’ shifting policies under Trump’s administration, including a pro-Russia pivot and newly imposed tariffs targeting the European Union. Although domestic reception to this coalition has been notably lukewarm, reactions abroad, particularly across Europe, have been largely positive. International observers, such as The Economist, described the agreement as “blandly reassuring,” while French newspaper Le Monde praised its strategic balance of party priorities, emphasizing its potential for maintaining diplomatic stability.
The February 2025 election results were a wake-up call for Germany’s traditional parties. The CDU/CSU emerged as the largest bloc with 28.5% of the vote, while the far-right Alternative for Germany (AfD) made significant gains, securing 20.8%. The SPD suffered its worst performance since 1887, garnering only 16.4%. These results show the fragmentation of the German electorate and the urgency for a stable government. Chancellor-elect Friedrich Merz, leader of the CDU, spearheaded the coalition negotiations, emphasizing the necessity of swift action to address both domestic and international concerns.
Despite the SPD’s historically poor performance, Merz prioritized the SPD’s pro-European stance over the isolationist and anti-EU sentiments embodied by the AfD. By forging a grand coalition with the SPD, Merz sought to present a centrist approach to governance, balancing fiscal responsibility with social investment. The coalition agreement outlined a comprehensive agenda, including amending Germany’s strict fiscal rules to allow increased governmental spending, particularly in defense and infrastructure, thereby bolstering Germany’s manufacturing sector and supporting broader EU strategic autonomy.
Domestically, the coalition has been met with criticism from various quarters. Leftist parties such as Die Linke and youth factions within the SPD have questioned the agreement’s stance on urgent socio-economic issues, including high rents, social inequality, and environmental concerns. Die Linke notably labeled it a “coalition of ignorance,” whereas the far-right AfD accused the CDU of betraying its electoral platform, contending that the party yielded excessively to SPD demands. Even within the CDU, younger conservative members voiced dissatisfaction, criticizing Merz for concessions perceived as overly favorable to the SPD, particularly regarding fiscal policy relaxations and reversing a promise to reject asylum seekers at the border.
Nevertheless, the coalition plans extensive economic initiatives aimed at rejuvenating German competitiveness. It has announced a €500 billion fund dedicated to investment in infrastructure, technology, and clean energy, complementing its focus on trade, railways, social housing, artificial intelligence, and advanced technology. This broad economic strategy also aims to attract foreign investment, especially as global investors increasingly shift assets from the volatile environment of the US under Trump’s policies to more stable European markets. Evidence of this shift includes heightened demand for German bonds and a recent appreciation of the euro against the dollar.
A central feature of the coalition’s agenda is its recognition of skilled labor shortages and the consequent reform of migration policies. Specialized agencies will expedite the recognition of foreign qualifications, encouraging international graduates to remain in Germany and strengthening the broader European workforce. These policies reflect the coalition’s commitment to reinforcing Germany’s long-term economic resilience while also acknowledging the importance of inclusive social strategies.
On the international front, the coalition prioritizes strengthening the EU’s internal market, supporting maritime industry through targeted investment in German shipbuilding, and advocating for uniform financial regulations to streamline financial services across the bloc. It strongly favors reducing bureaucratic barriers and expanding qualified majority voting within the EU Council—an effort to limit the obstructive power of individual member states such as Hungary under Viktor Orbán. The coalition also envisions enhancing the European Space Agency, including aspirations to send a German astronaut to the moon, giving broader commitments to pan-European scientific and technological leadership.
In terms of foreign relations beyond Europe, the coalition emphasizes the importance of maintaining robust ties with the United States despite recent tensions, advocating for a medium-term trade agreement to mitigate immediate conflict risks. Simultaneously, it promises a pragmatic approach to China, combining cooperation where mutually beneficial with firm resistance where necessary to protect European interests. Part of this defense-oriented policy includes exempting defense expenditures above 1% of GDP from borrowing limits, a move intended to strengthen EU security frameworks.
As the coalition prepared to assume power—setting May 6, 2025, as the date on which Friedrich Merz would be sworn in as chancellor—there remained significant concerns about the continued rise of the AfD. Recent polling indicates the AfD has surpassed the CDU in popularity, showing ongoing political shifts within Germany and signaling the challenges the new government will face in uniting the country and the broader European community. Despite this, the coalition’s alignment with prominent European leaders, notably French President Macron, places it in a strong position to promote deeper EU integration in financial, defense, and security realms.
While the grand coalition’s ambitions for a stronger, more unified Europe have garnered considerable international approval, its durability depends on resolving domestic discontent and proving to voters the tangible benefits of centrist governance. Whether this “Responsibility for Germany” agenda will effectively shape the nation’s future hinges on the coalition’s ability to implement its extensive policy commitments, maintain social cohesion, and uphold Germany’s role as a stabilizing force within the European Union.
Gros News 
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