Germany’s Social Democratic Party (SPD) has overwhelmingly approved the coalition agreement with the conservative CDU/CSU bloc, removing the final obstacle to forming a new government in Europe’s largest economy. According to sources close to the party, 84% of participating SPD members voted in favor of the 144-page coalition treaty, surpassing the 66% approval rate from the party’s last coalition vote in 2017. The turnout for the vote was 56%, well above the 20% minimum required for validity.
This approval paves the way for conservative leader Friedrich Merz to be elected chancellor by the German parliament on May 6, following the CDU/CSU’s earlier endorsement of the coalition deal. The new government aims to tackle Germany’s ongoing economic challenges, including three consecutive years of contraction and the impact of recent US tariffs that threaten the export-driven economy.
The coalition agreement outlines plans for significant investments in infrastructure, an increase in the minimum wage to €15 per hour, maintaining pensions at 48% of the average salary, and extending rent caps. The SPD secured key cabinet positions, including the influential finance ministry, though compromises on stricter immigration policies and limited tax reforms have drawn criticism from the party’s youth wing.
With the SPD’s endorsement, Germany is set to transition from Chancellor Olaf Scholz’s administration to Merz’s leadership, marking a new chapter aimed at economic revival and political stability amid a complex domestic and global landscape.