Despite previous election promises to avoid large-scale government spending, the CDU/CSU have now agreed to billion-euro investments to renovate German highways, railways, and rural areas. Additionally, a considerable sum is allocated for economic recovery, aiming to strengthen Germany's competitive position and modernize infrastructure.
The coalition agreement also provides for the introduction of a minimum hourly wage of 15 euros. However, farmers' organizations have already called for an exemption for the agricultural sector, fearing that higher labor costs will further pressure already tight profit margins.
The CSU has secured the right to supply the Minister of Agriculture in the new government. Although the specific appointments to ministerial posts will be announced later, this agreement underlines the CSU's influence within the coalition and their focus on agricultural issues.
Another measure in the agreement is the reintroduction of tax benefits for cheap diesel for agricultural vehicles. This step is welcomed by farmers, as it helps them reduce operational costs and maintain the competitiveness of the German agricultural sector.
Friedrich Merz, the leader of the CDU, will become chancellor after three prior attempts in the past twenty years. Merz, who previously worked in the financial sector, has built a reputation as an advocate of conservative economic reforms and is known for his sharp criticism of left-wing policies.
The Christian Democratic alliance in Germany consists of two separate parties: the Christian Democratic Union of Germany (CDU), primarily active in the northern and central regions of the country, and the more conservative Christian Social Union in Bavaria (CSU), operating in the southern federal state of Bavaria. This cooperation allows them to jointly form a broad political base.
The black-red 'grand coalition' agreement still needs approval during the CDU/CSU party congress and through an SPD membership referendum, scheduled on April 28 and 29.