Germany’s new government clears final hurdle with SPD vote – DW – 04/30/2025

With SPD members approving the coalition agreement, Christian Democratic Union leader Friedrich Merz is set to be elected chancellor by parliament on May 6.

This would pave the way for the new government to take office exactly six months after the current center-left coalition collapsed over the sacking of former finance minister Christian Lindner.

In December, Chancellor Olaf Scholz called and lost a vote of confidence after the collapse of his coalition government, paving the way for new elections.

On February 23, Germans voted for a new Bundestag, the lower house of the parliament. The results were disappointing for the parties of the governing coalition, all of which lost their share of the vote, with Lindner’s FDP failing to enter parliament.

The conservative CDU/CSU bloc appeared to be the winner with 22.6% of the vote.

The far-right Alternative for Germany (AfD) came in second with 20.8%, but the populist party is “firewalled” by Germany’s established parties, meaning they have refused to work with the far right.

CDU leader Friedrich Merz decided to enter coalition negotiations with the SPD, which came in third with 16.4%.

Germany’s Social Democratic Party (SPD) has approved a coalition agreement with the conservatives, sources close to the party said.

According to the reports, 84% of participating members voted in favor of the deal.

This is more than the 66% in the last membership vote to form a government with the CDU/CSU bloc in 2017.

The vote, which ended just before midnight on Tuesday, took place over a two-week period. 

Voter turnout was 56%, the sources said. A minimum of 20% of members needed to take part in the vote for it to be valid.

Weighed down by sluggish business in the key Chinese market, German luxury carmaker Mercedes-Benz reported a sharp drop in earnings at the start of 2025.

The company reported a 43% year-on-year drop in first-quarter net profit to €1.73 billion ($1.96 billion).

Revenue fell 7.3% to 33.2 billion yuan due to a global decline in vehicle sales. Operating profit fell nearly 41% to €2.29 billion, reflecting ongoing market challenges.

Mercedes-Benz also warned of a potentially significant impact on profitability from recently imposed US import tariffs.

However, the company said it remains difficult to assess the exact impact on demand due to the evolving situation and possible retaliatory measures.

German automaker Volkswagen reported a steep drop in first-quarter profit. The company cited heavy one-time charges and a weaker performance in China.

Europe’s largest automaker posted a nearly 41% year-on-year drop in profit to €2.19 billion ($2.49 billion) for the first three months of 2025.

While group revenues rose nearly 3% to €77.6 billion, several headwinds weighed on the bottom line.

In addition to previously announced multi-billion-dollar special charges, Volkswagen earned significantly less from its joint ventures in China, a key market. Losses also worsened in the battery division.

Volkswagen reaffirmed its outlook for the year, although the forecast does not yet take into account the potential impact of new US trade tariffs under President Donald Trump’s administration.

Germany’s Social Democrats (SPD) on Wednesday will announce the result of a membership vote on a coalition deal with the conservative bloc of Christian Democrats (CDU) and its Bavarian sister party, the Christian Social Union (CSU).

Since the parties have already signed the coalition agreement, the approval of the new government depends on the SPD’s party base.

The SPD’s roughly 358,000 members had until 23:59 (2159 GMT) on Tuesday to vote on the 144-page agreement.

To pass, not only must a majority of members approve the program, but at least 20% of the party’s membership must vote.

If the SPD approves the deal, the CDU’s Friedrich Merz will be elected chancellor by parliament on May 6.

Thank you for following our coverage of news in Germany on Wednesday, 30 April. 

The process to secure Germany’s next government appears to be coming to a close with one part of the coalition, the center-left Social Democrats (SPD) to give (or not) the final green light to the 144-page coalition agreement.

SPD members voted on Tuesday, with results expected on Wednesday, after the Christian Democratic Union/Christian Social Union (CDU/CSU) bloc gave their approval on Monday.

Chancellor Olaf Scholz’s cabinet will meet on Wednesday for what is expected to be its last session. The outgoing chancellor will then travel to Paris for a meeting with French President Emmanuel Macron.

We’re also expecting the release of the German inflation and unemployment figures for April.