### Coalition Talks in Germany: Merz and SPD Take Initial Steps Towards Governance In a significant political development, Friedrich Merz's conservative bloc, the CDU/CSU, and the Social Democrats (SPD) have successfully concluded preliminary talks aimed at forming a coalition government in Germany. This coalition is crucial as it seeks to address pressing economic challenges and enhance military spending in response to geopolitical tensions, particularly concerning Russia. The urgency of these negotiations is underscored by the upcoming parliamentary session, where the parties aim to push through a loosening of Germany's borrowing limits to stimulate growth in Europe's largest economy [https://indianexpress.com/article/world/germany-friedrich-merz-spd-form-coalition-9876204]. ### Structure of the Coalition Negotiations 1. **Preliminary Talks Completion**: The CDU/CSU and SPD have finished initial discussions, marking a significant step towards formal coalition negotiations [https://www.channelnewsasia.com/world/germanys-merz-and-spd-reach-preliminary-deal-towards-coalition-4987606]. 2. **Focus on Economic Revival**: The coalition aims to implement reforms to revive the ailing German economy, which has been under pressure due to various factors, including the ongoing conflict in Ukraine [https://www.businesslive.co.za/bd/world/2025-03-09-germanys-election-winner-merz-and-spd-race-for-coalition-deal]. 3. **Military Spending and Geopolitical Strategy**: Merz has emphasized the need for Germany to bolster its military capabilities, indicating a shift in defense policy amid rising tensions with Russia [https://www.theguardian.com/world/2025/mar/08/german-election-winner-merz-moves-step-closer-to-forming-government]. 4. **Next Steps**: The parties are expected to enter formal coalition negotiations soon, with a target to finalize the agreement by Easter [https://www.devdiscourse.com/article/politics/3300826-election-winner-merz-eyes-coalition-amid-tough-migration-talks]. ### Supporting Evidence and Data - **Economic Context**: Germany's economy has been struggling, prompting the need for a coalition that can effectively address these issues. The proposed loosening of borrowing limits is a key strategy to stimulate growth [https://indianexpress.com/article/world/germany-friedrich-merz-spd-form-coalition-9876204]. - **Military Spending**: Merz's call for increased military spending reflects a broader European concern regarding security in light of Russian aggression [https://www.businesslive.co.za/bd/world/2025-03-09-germanys-election-winner-merz-and-spd-race-for-coalition-deal]. - **Political Landscape**: The SPD, led by outgoing Chancellor Olaf Scholz, has faced significant challenges, including their worst electoral performance since World War II, which has necessitated a coalition with the conservatives [https://www.dw.com/en/germany-cdu-csu-alliance-and-spd-finish-preliminary-talks/a-71868076]. ### Conclusion: A New Era for German Politics The coalition talks between Friedrich Merz's CDU/CSU and the SPD represent a pivotal moment in German politics, with the potential to reshape the country's economic and military policies. 1. **Coalition Formation**: The completion of preliminary talks is a crucial first step towards establishing a new government [https://www.channelnewsasia.com/world/germanys-merz-and-spd-reach-preliminary-deal-towards-coalition-4987606]. 2. **Economic and Military Focus**: The coalition aims to address economic challenges and enhance military readiness in response to external threats [https://www.businesslive.co.za/bd/world/2025-03-09-germanys-election-winner-merz-and-spd-race-for-coalition-deal]. 3. **Future Negotiations**: Formal negotiations are expected to commence soon, with a goal of finalizing the coalition by Easter [https://www.devdiscourse.com/article/politics/3300826-election-winner-merz-eyes-coalition-amid-tough-migration-talks]. This coalition could mark a significant shift in Germany's political landscape, with implications for both domestic policy and international relations.