German conservatives, led by Friedrich Merz, have reached a coalition deal with the centre-left Social Democrats in an effort to boost economic growth amidst global trade tensions. The agreement includes tax cuts, support for the electric car industry, and tougher migration policies, while also emphasizing Germany’s relationship with the US and the need for a unified EU response to trade conflicts. Merz, set to become chancellor, aims to strengthen defense spending and enhance economic competitiveness, signaling a shift from Merkel’s more liberal migration approach.
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