Germany’s major centrist parties have reached a coalition deal, amid mounting pressure to form a government as Europe’s largest economy teeters on the brink of recession after sweeping tariffs imposed by the Trump administration caused global turmoil. Details of the coalition agreement remain unclear, and are set to be unveiled at a Berlin news conference at 9 a.m. ET. Chancellor-in-waiting Friedrich Merz’s CDU party emerged victorious in February’s vote but failed to win a majority, with the far-right Alternative for Germany (AfD) surging into second place and almost doubling its supporter base. Since then, the CDU/CSU have for weeks been locked in formal coalition talks with the SPD – Germany’s other main centrist party, which had led a three-way coalition government until its collapse in November 2024. Pressure in Berlin to reach a deal had only mounted in the face of wider uncertainty, including the Trump administration’s introduction of sweeping…
