Germany has successfully formed a new coalition government led by conservative leader Friedrich Merz, bringing together the Christian Democratic Union (CDU/CSU) and the Social Democrats (SPD). This agreement follows weeks of negotiations and comes at a time when the country faces challenges such as looming Trump tariffs and fears of recession. Merz emphasizes the need for economic revitalization and plans to implement stricter migration policies while countering the growing influence of the far-right Alternative for Germany (AfD) party. The new government aims to project a strong and effective administration amid evolving international relations and domestic pressures.