독 Scholz Government to Launch Next Month... End of Merkel Era

(Photo by Reuters)

[Asia Economy Reporter Yujin Cho] The center-left Social Democratic Party (SPD), which won the German general election, will launch a new government two months after its victory.

On the 24th (local time), according to the Washington Post (WP) and AP News, Olaf Scholz, the SPD's chancellor candidate, announced that he had reached an agreement with the Green Party and the Free Democratic Party (FDP) to form a new coalition government. Members of the three parties are expected to give final approval to the agreement within 10 days.

At a press conference that day, Scholz declared, "The 'traffic light' coalition is ready to lead Germany," adding, "We are united by faith in progress and the belief that politics can do good."

This comes two months after the SPD narrowly surpassed the Christian Democratic Union (CDU) and Christian Social Union (CSU) alliance, to which Chancellor Angela Merkel belongs, becoming the largest party in the September general election.

In the coalition agreement released that day, the parties stated that the new government will establish a crisis team to respond to health emergencies.

They also revealed plans to accelerate Germany's existing goal of phasing out coal-fired power generation from 2038 to 2030 to address climate change.

The agreement also includes a proposal to legalize the controlled sale of cannabis in licensed stores for adults.

Regarding cabinet formation, the pro-business FDP will take charge of the Ministry of Finance, meaning Christian Lindner, leader of the FDP, will be responsible for the finances of Europe's largest economy. The Green Party will oversee the economy, climate protection, energy, and foreign affairs.

Although Chancellor Merkel's official term ended last month, she and her cabinet will maintain a caretaker government until the new chancellor is elected.

The New York Times (NYT) evaluated that during Merkel's 16 years in office, Germany solidified its position as an indispensable country in Europe and the world.

The NYT stated, "Merkel was not only the Chancellor of Germany but also the de facto leader of Europe," adding, "She led Europe's and Germany's growth through successive crises and, for the first time in modern history, made Germany the real power in Europe."

The WP noted that given Scholz's tenure as finance minister in Merkel's government, the Scholz administration is expected not to deviate significantly from Merkel's fundamental policies. J?rgen Falter, a political science professor at Mainz University, described the coalition as "an evolution rather than a revolution from the Merkel era."

It is assessed that Scholz aims to strengthen European integration and enhance relations with the United States, which is pressuring China and Russia. An economist at Berenberg Bank said, "The new government will focus more on succession than change," adding, "This will be disappointing for those who hoped for something completely different to begin."

This content was produced with the assistance of AI translation services.