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Perth Now
30-04-2025
- Business
- Perth Now
German coalition approved for Merz to become chancellor
Germany's centre-left Social Democrats have approved a deal to join a new coalition government, paving the way for parliament to elect conservative leader Friedrich Merz as the new chancellor. The conservative-SPD coalition was the only path to a majority government after both major parties suffered steep losses in the February general election. They have both ruled out governing with the far-right Alternative for Germany which scored a historic second place. Over the last two weeks, SPD members have voted on the coalition treaty drawn up by leaders of both parties. Their approval, which had been expected, would enable Merz to become chancellor on May 6. In the vote, which ended on Tuesday just before midnight, 84 per cent of the members who took part were in favour of the deal, the party said, adding that 56 per cent of the around 360,000 members took part in the vote. "In these very difficult times in global politics, we bear responsibility for our security, for economic growth, secure jobs and equal opportunities," party General Secretary Matthias Miersch said in a statement. Reviving Europe's largest economy is a top priority for Germany's next government, amid fears a trade war sparked by US President Donald Trump's tariff announcements could further hurt its export-driven economy. Despite the SPD's historic low of just 16.4 per cent of the vote, political experts say it secured key gains in the coalition deal, leveraging the conservatives' lack of alternative paths to the chancellery for the next four years. The next coalition aims for example to invest heavily in Germany's infrastructure, raise the minimum wage to 15 euros ($A26.60) per hour, keep pensions level at 48 per cent of the current average wage and extend a cap on rents, according to the coalition contract. The SPD also secured the coveted finance ministry, along with six other cabinet posts. The SPD's concessions on tighter migration rules and cuts to unemployment benefits as well as its failure to secure tax hikes for the wealthy have, however, drawn sharp criticism from the party's influential Jusos youth wing, whose leaders had urged members to reject the deal. with AP
South China Morning Post
30-04-2025
- Business
- South China Morning Post
Germany's Merz to form government after coalition deal clears last hurdle
Germany's Social Democrats have backed a treaty for a coalition with the CDU/CSU conservatives, the party said on Wednesday, clearing the last hurdle for the formation of a new government in Europe's largest economy. Advertisement The conservative-SPD coalition was the only path to a majority government after both major parties suffered steep losses in the February federal election. They have both ruled out governing with the far-right Alternative for Germany which scored a historic second place. Over the last two weeks, SPD members have voted on the coalition treaty drawn up by leaders of both parties. Their approval, which had been expected, would enable conservative leader Friedrich Merz to become chancellor on May 6. Germany's chancellor-in-waiting Friedrich Merz. Photo: Reuters In the vote, which ended on Tuesday just before midnight, 84 per cent of the members who took part were in favour of the deal, the party said, adding that 56 per cent of the around 360,000 members took part in the vote.
Gulf Today
08-03-2025
- Business
- Gulf Today
Germany's voters indifferent to climate issues
Climate activists fear the worst when Germany's conservatives and Social Democrats begin to thrash out a joint climate policy for their future coalition government. A country once seen as a beacon of progressive climate policy is poised for a significant reset, with the conservatives – having in part blamed Germany's ambitious green goals for chronic economic weakness – keen to roll back targets and policies amid rising voter apathy on climate. As Europe's largest emitter of CO2 but also Europe's biggest generator of renewable energy, Germany's future stance on climate issues will be even more critical after the United States' withdrawal from the Paris Agreement and with the European Union under pressure from some members to ease regulations and goals, according to Reuters. Since winning February's election, the CDU has affirmed its commitment to Germany's overarching 2045 target of being climate neutral but emphasises a 'pragmatic approach that supports the economy, industry, and public acceptance', according to Andreas Jung, the conservatives' climate policy spokesperson. The party wants to abolish a future ban on the sale of new petrol and diesel cars, end restrictions on the use of cars, reverse a law phasing out fossil fuel heating, and reintroduce diesel subsidies in agriculture. How strongly the SPD will defend its green election pledges – to stick to national and EU targets, invest in green infrastructure and renewables, and focus on affordable climate protection – in coalition talks is key, climate activists say. Greenhouse gas emissions in Germany fell by 12.5% under the three-party 'traffic light' coalition of the SPD, Greens, and Free Democrats, thanks to a renewable energy push and a drop in industrial production. But emissions cuts in sectors such as transport and building – 38% of Germany's 2024 total emissions – have stalled. Expanding net-zero policies to these sectors has faced growing resistance in Germany and Europe, amid a cost-of-living crisis that has shifted climate protection lower on German voters' priorities in the February election. Only 12.8% of Germans saw climate protection as the most important issue in this election, down from 24.4% in 2021, a study by IW Koeln economic institute showed, adds the Reuters report. Environmental and expert groups say Germany is not expected to meet the 2045 target as things stand. The Green Party, heading for opposition, still wields some influence, after threatening to tie its support for a new conservative-SPD financial package to the inclusion of some climate investment commitments within that plan. Germany cannot unilaterally reverse EU laws, but its influence is strong. The centre-right European People's Party (EPP), the largest group at the European parliament and which includes Germany's conservatives, launched a campaign in December to weaken the bloc's climate rules. At a recent EPP retreat in Berlin, conservative leader and Germany's likely next chancellor Friedrich Merz signed a declaration calling on the EU to abandon its renewable energy goals, a step backed by industry. The European emissions trading system (ETS), extending to the transport and buildings sectors from 2027, is expected to increase prices and make heating or powering vehicles with fossil fuels less appealing. But if prices rise too much that creates a crisis of affordability. Germany must annually invest about 3% of its GDP in climate protection measures like power grid upgrades, industry electrification and public transport expansion, to meet its 2045 climate neutrality goal, says Berlin-based think tank Agora. The conservatives and SPD this week agreed to create a 500-billion euro infrastructure fund and overhaul borrowing rules but dedicated climate investments are not included in the fund. The chance of sluggish climate action under a future conservative-led government is likely to spark more legal battles and direct action activism, which surged in Germany, despite the greener SPD-led government. Roadblocks, airport protests, and demonstrations at oil installations captured national attention and triggered a government crackdown and there are already three climate-related constitutional complaints pending before Germany's top court.
