Investments, reforms, but also “co -axes” of the government, expected in early May. Smoke today from Berlin, as after negotiations of weeks of Christian Union and SPD reached an agreement on the formation of a government and the CSU. In early May, after the necessary intra -party processes have been preceded, CDU chief Friedrich Mertz is expected to take on his duties as the next German Chancellor.

Mertz: We have a strong plan for the future

In a press conference on the presentation of the deal, Mertz was in particular in the strained geopolitical conditions. “Both from the interior and abroad,” there were great pressure from forces that were not “with us, but against us,” said the anticipation of Chancellor, referring to the Russian invasion of Ukraine but also on US President Donald’s duties.

Nevertheless, “after hard work we have a strong plan,” Merz added, which is a “loud and clear message” to German citizens and the EU. “Germany acquires a strong and capable government”, which will make the necessary reforms and investments. “Europe can rely on Germany,” Mertz said.

“We live in truly historical times”, where peace is not given as it used to be, SPD President Lars Clningbail said. However, during the negotiations we “managed to build bridges”, which is also necessary in view of social polarization. “We are investing in infrastructure, security and the future,” the SPD politician said.

And Marcus Zender (CSU) emphasized that, although “every proposal, every word, every party of this text is pure policy”, the agreement is “an answer to the problems of our time”.

SPD’s other president, Saskia, has ended the Special Investment Fund for Infrastructure, Climate and Defense Defense Infrastructure Fund. With these “we set the necessary conditions to improve the defense of our country and to modernize it methodically”. Investments should now proceed “reasonably, quickly and efficiently,” ECSEN said, even announcing significant investments in climate protection and technologies necessary for it.

Agreement on the sharing of ministries

In the context of disagreements over the policy that the next government will draw on on the burning issues that Germany is called upon to face, such as foreign policy and strengthening defense, there has long been disputes and the sharing of ministries.

According to information from the German News Agency early today, the CDU will re -take over the Ministry of Foreign Affairs for the first time for 60 years, while the Ministries of Finance, Justice and Defense will be taken over by the Social Democrats.

The former CDU Secretary -General, Karsen Linenman, will lead the Ministry of Finance, the interior ministry will go to the CSU, while the most likely head of the Foreign Ministry seems to be Johann Vandoupoul of the CDU, a foreign policy expert.

As for the ministries to be taken over by the Social Democrats, the finance minister will be SPD President Lars Klingbail, while Boris Pistorius and Schnenia Sulce, Ministers of Defense and Development in the previous government, are expected to maintain them respectively.

Overall the SPD is going to take up seven ministries, the CDU six and CSU three.

Unbelievable a large tax reform

As for the country’s economic policy, where the Christian Union has promised a clearly clear change of course, in recent weeks there has been a strong debate, especially about the possibility of a large tax reform – in order for Germany to become more attractive as a business and investment location through their tax cuts. Although many details have not been disclosed, the data so far show that the new government will not proceed with a large tax reform.

It is therefore not unlikely that the Christian Democrats will mislead some of their pre -election promises. In recent days, CSU chief Marcus Zender has repeatedly stated that taxation will not increase – a placement that Spiegel is perceived as a preparatory communication turning point on the part of a Christian Union.

The agreement is hasty?

Experts and analysts, however, are concerned that the agreement on the formation of a government and the sharing of ministries may have a weak foundation.

Many point out that the negotiations may have been accelerated by the geopolitical challenges facing both Germany and the EU in general -something that Mertz has virtually acknowledged at a press conference. With the escalation of the trade war and Donald Trump’s duties on the one hand, the war in Ukraine raging from the other and Europe in the middle trying to cope, the German political leadership felt the need to reach an agreement in order to make it possible for it to be in agreement with the sooner and the new possible. The far -right looks bigger than ever for Germany, since for the first time in history AfD is at the top of today’s Ipsos Institute poll, overtaking the Christian Democrats by 1%.

It remains to be seen whether the new government will keep its pre -election promises on the one hand, on the other hand it will not prove to be “durable” before the challenges. It is certain, however, that at first appearance it seems as a government of compromises and therefore fine balances, which will be called upon to take Germany in a highly demanding international context.

Sources: Tagesschau, Spiegel, RND, ZDF