Germany’s election winner Friedrich Merz and the SPD have wrapped up preliminary coalition talks, pledging stricter migration controls and economic reforms. Merz aims to finalise the deal by Easter, stressing Europe must strengthen itself amid shifting U.S. policies under Donald Trump.

Friedrich Merz, the incoming German chancellor, is pushing for a coalition agreement with the SPD by April 20. The parties seek to implement stricter migration controls, boost industry, and loosen borrowing limits to stimulate growth in Europe’s largest economy.

Merz has emphasised the urgency of strengthening Germany’s military and economic resilience, citing geopolitical tensions and concerns over a less reliable U.S. under Trump. The CDU/CSU and SPD plan to push key fiscal reforms through parliament next week, including adjustments to Germany’s debt brake and a €500 billion infrastructure fund.

A policy paper released alongside the talks outlined plans for tighter border controls, faster deportations, and reforms to welfare payments. Markus Söder, leader of Bavaria, suggested reducing benefits for those unwilling to work, while SPD co-leader Lars Klingbeil stressed the need to balance migration restrictions with success stories.

Economic policies will focus on easing costs for businesses, supporting e-mobility, and preventing penalties for automakers exceeding CO2 limits. The coalition will also negotiate with the Greens, whose support is crucial for passing financial reforms. However, Green leaders warned that major disagreements remain, particularly over funding election promises.

Key votes in parliament are set for March 18 and March 25, where opposition from far-right and radical left lawmakers could complicate Merz’s plans.

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