Germany's Friedrich Merz has agreed a deal to form a new government with a rival party

The leader of the Christian Democratic Union of Germany, Friedrich Merz, has reached an agreement with the Social Democrats to form a new government.

The new cabinet's main priorities are to support economic growth, increase budgetary allocations for defense, pursue a stricter migration policy, and restore previous successes in modernization.

The deal paves the way for new leadership in the European Union's most populous country and the continent's largest economy. It follows months of political calm and weeks of negotiations amid uncertainty over massive tariffs imposed by the United States and its commitment to defending European allies.

Merz plans to take over as Germany's new chancellor in early May, replacing outgoing leader Olaf Scholz.

Merz's Union bloc emerged as the most powerful force in Germany's February 23 elections. He has approached Scholz's Social Democrats to form a coalition with a parliamentary majority.

Before Merz can take office, the coalition agreement must be approved by a vote of Social Democratic Party members and a Christian Democratic Union party convention scheduled for April 28. Once those steps are passed, the lower house of parliament, in which the allies hold 328 of the 630 seats, will be able to elect him as chancellor.

Merz said the deal was “a very strong and clear message to the people of our country, and also a clear signal to our partners in the European Union: Germany is getting a government that is ready to act and that is acting boldly.”

Asked about the message to the US President, he said: “The main message to Donald Trump is that Germany is back on track. Germany will meet its defense commitments and is ready to strengthen its own competitiveness.”

He added: “We will move the European Union forward.”

Sourse: breakingnews.ie

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