Germany’s election victor, Friedrich Merz, and his conservative bloc (CDU/CSU) concluded initial coalition discussions with the Social Democrats (SPD) on Saturday, outlining a firm stance on illegal migration, economic revitalization, and industrial support.

Merz, the chancellor-in-waiting, aims to finalize a coalition agreement by Easter (April 20), stressing Europe’s urgent need to strengthen itself amid an increasingly hostile Russia and diminishing U.S. reliability under President Donald Trump.

Both parties are racing to secure an agreement before next week, when they plan to push for relaxed borrowing limits in parliament to stimulate growth in Europe’s largest economy and enhance military spending.

“There is an enormous urgency, particularly regarding the Bundeswehr’s budget,” Merz emphasized.

Germany’s coalition-building follows a two-phase process—exploratory talks followed by formal negotiations. The CDU/CSU and SPD, after a contentious election campaign, have been deliberating over key issues such as migration policies and welfare reforms.

Merz reaffirmed a commitment to curbing illegal migration, pledging coordinated action with European Union partners.

“In agreement with our European neighbors, we will turn back individuals at shared borders, including asylum seekers. We will employ all legal means to significantly reduce irregular migration. From day one, we will expand border controls and increase rejection rates,” he declared.


Merz’s firm stance on migration and security signals a shift in Germany’s political landscape, as the far-right Alternative for Germany (AfD) rises to become the country’s second-largest party.

SPD co-leader Lars Klingbeil echoed the need for controlled migration while advocating for more success stories in integrating migrants. Meanwhile, Markus Söder, a key Merz ally and Bavaria’s premier, announced welfare reforms aimed at withdrawing financial aid from individuals capable of working but unwilling to do so.

Germany’s economic challenges, including a two-year contraction and struggles in its automotive sector, remain a focal point. The coalition’s joint policy paper supports e-mobility initiatives and seeks to shield automakers from penalties tied to exceeding CO2 emissions standards.

Attention now shifts to the outgoing parliament, where lawmakers will debate a €500-billion ($542 billion) infrastructure fund and amendments to Germany’s strict borrowing rules—known as the "debt brake"—starting March 13. A Bundestag vote is scheduled for March 18, ahead of the new parliament’s formation on March 25. However, opposition from an expanded far-right and radical left faction could obstruct these financial measures.

The proposed spending overhaul marks a significant departure from Germany’s traditionally frugal policies, rolling back post-2008 financial crisis constraints that critics now view as outdated fiscal limitations.

To pass these measures, Merz and the SPD require the Greens' support, but deep divisions remain. Merz announced “intensive talks” with the Greens next week, though party leaders signaled ongoing disagreements.

“We are still far from a consensus,” Green Party co-leader Franziska Brantner stated. “It’s clear that coalition partners are eager to secure funding in time to fulfill their election promises.”