The Briefing Germany’s government agrees a coalition
Apr 9, 2025
Suda David Wilp, Vice President at the German Marshall Fund, shares his insights on Germany's newly formed coalition government involving the CDU and SPD. He discusses the complexities of coalition negotiations, influenced by the far-right AFD and pressing fiscal policies. The conversation also touches on the ramifications of Donald Trump’s tariffs on global markets. Additionally, the rise of business leaders in shaping political discourse amidst these tensions adds an intriguing dimension to the dialogue.
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German Coalition Formation
- Germany's CDU and SPD formed a coalition government due to global instability and a desire for German leadership in Europe.
- This coalition was formed remarkably quickly, driven by external pressures like Trump's tariffs and the war in Ukraine.
Challenges for the Coalition
- The new coalition faces challenges, including uniting on policies like migration while managing pressure from the far-right AfD.
- The AfD's rise is ironic, considering it opposes the spending increases that aim to address Germany's geopolitical challenges.
Germany's Response to Tariffs
- Trump's tariffs expedited the coalition talks as Germany recognized the need for stability amidst economic concerns.
- While the EU takes the lead, Germany wants a strong, unified response, but some members prefer quieter negotiations.