Two of the country’s biggest parties freeze out rightwing AfD and prepare for impact of Trump’s new tariffs
Germany’s biggest mainstream parties have sealed an agreement to form a government keeping the far right out of power, as Europe’s top economy struggles to reverse a downturn and gird itself for the potentially catastrophic impact of new US tariffs.
The prospective chancellor Friedrich Merz’s conservative CDU/CSU announced the breakthrough deal with the centre-left Social Democrats (SPD), which had led the ruling coalition since 2021.
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