German Christian Democratic Union (CDU) leader Friedrich Merz said on Wednesday that the new governing coalition, comprising the CDU, the Christian Social Union (CSU) and the Social Democratic Party (SPD), is sending a "clear signal" to its European partners and has a "strong plan" for Germany. He said the government will "help shape change in the world in Germany's interest," including supporting Ukraine and responding to the "turbulence" caused by the United States tariffs. He acknowledged the "difficult" economic situation in Germany and vowed to make the country more competitive, estimating the new government could start working in early May.
According to a policy document sent to reporters, the coalition plans to cut corporation tax by 1% a year for five years from 2028, reach a medium-term free trade agreement with the US and deliver a reform of the debt brake, which is enshrined in the German constitution.
