Merz Announces New German Government, Cites Concerns About Russia, US Tariffs

Germany's Christian Democrat leader Friedrich Merz has announced that talks on forming a new coalition government have been completed, stating it would aim to take office in early May.

Merz noted the coalition talks took place amid "growing international political tensions," citing Russian President Vladimir Putin's ongoing invasion of Ukraine and US tariffs.

"The Russian aggressor, Putin, shows no willingness to end the war and to let the guns go silent. At the same time, economic uncertainties are growing enormously. Just this week, US government decisions have caused new turbulence," Merz said.

Merz will be the new German chancellor in a coalition with the Social Democrats, led by Lars Klingbeil, who is expected to be Finance Minister.

Support For Ukraine

As the new government was announced, its 144-page policy plan was published, pledging strong support for Ukraine.

"We will provide comprehensive support to Ukraine so that it can effectively defend itself against the Russian aggressor and assert itself in negotiations," it says.

Germany's outgoing government, which is led by the Social Democrats under Chancellor Olaf Scholz, has been a key supplier of military and economic aid to Ukraine since Russia's full-scale invasion in 2022.

Merz, as opposition leader, has often called on it to be faster and bolder in this. But it's not clear what this will mean in practice.

During a recent visit to Berlin, Ukrainian President Volodymyr Zelenskyy voiced the hope that the new government would supply Taurus cruise missiles -- a longstanding request. Merz, at the time, was noncommittal.

The new government is expected to significantly boost Germany's defense budget, although it's not clear by exactly how much.

Even before taking office, Merz has pushed a constitutional reform through the German parliament that means strict limits on government debt no longer apply to defense spending.

"Our security is currently more endangered than at any time since the end of the Cold War. The greatest and most direct threat comes from Russia," says the new coalition's policy document. It adds that "Putin's pursuit of power threatens the rules-based international order."

Trump Tariffs

There's no mention of the US president in the document.

But when Merz was asked about US ties by a foreign journalist, he switched briefly to English to say, "The message to Donald Trump is: Germany is back on track, Germany will fulfil the obligations in terms of defense."

Asked about US tariffs, Merz said Europe should seek a joint response. His words came hours after EU countries agreed a range of countermeasures, including staggered tariffs on selected imports from the United States beginning on April 15.

Merz is a lifelong transatlantacist who also spent four years working for the US investment company BlackRock. After his election victory in February, amid a tense start in ties between Europe and the new US administration, he said Europe must secure "independence" from Washington in terms of defense.

Still, the coalition agreement says the relationship with Washington is of "paramount importance."

"In trade policy, we seek close cooperation with all of North America. The trans-Atlantic economic area offers the best conditions for success in global competition," it states.

Iran's Nuclear Program

The document also reaffirms Germany's commitment to working with Washington and other Western partners to end Iran's nuclear program.

"We support international sanctions against the Iranian regime and will push for the Revolutionary Guards to be put on the EU list of terror organizations," it says.

The new government's domestic priorities include promises to boost growth via economic reforms and to crackdown on illegal immigration.

The new coalition needs to be approved by Social Democrat party members and the senior leadership of the Christian Democrats, before a confidence vote in parliament.