German parties present coalition agreement

Olaf Scholz, from the center-left Social Democratic Party (SPD), is generally expected to take the helm. Angela Merkel resigns after 16 years as Chancellor.

Scholz’s SPD, Greens and pro-business Free Democrats (FDP) will unveil their coalition agreement in Berlin at 15.00 local time (09.00 ET), the FDP said in a statement earlier Wednesday.

A final round of bargaining is expected to take place on Wednesday ahead of a press conference later in the afternoon.

Once the agreement is announced, it will go to members of the wider party for consideration.

This follows one close to the September election and two months of negotiations to form a new government.
The SPD narrowly wins the German election against Merkel's CDU, but there is still uncertainty about the next leader

The three coalition parties are not traditional bedfellows. The FDP is more usually in line with the center-right, rather than the left-wing SPD and Greens.

Until now, a turning point in the coalition negotiations has been the financing of the Greens’ ambitious climate plans, where the Free Democrats are against raising taxes.

A new government will spell the end of the Merkel era, leaving her center-right Christian Democratic Union (CDU) and its sister party the Christian Social Union (CSU) to opposition after 16 years in power.
The future Chancellor will take over the helm of Europe’s largest economy at a time of growing diplomatic uncertainty in the EU, where the bloc is facing aggression from Russia and Belarus, and threats against the rule of law from Poland and Hungary.


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