• Germany's Social Democrats (SPD) have approved a coalition deal with CDU/CSU conservatives.
• Friedrich Merz is set to become chancellor on May 6.
• 84% of SPD members supported the coalition, allowing for a new government amid economic challenges.

Germany's Social Democrats (SPD) announced that their members have overwhelmingly backed a coalition treaty with the CDU/CSU conservatives, thus paving the way for Friedrich Merz to assume the chancellorship on May 6. The approval came as a result of a member vote where 84.6% supported the coalition agreement, allowing for the formation of a government after both parties experienced significant losses in the February federal election, where the AfD emerged as a strong competitor, obtaining a historical second-place finish, according to Reuters and South China Morning Post and India Times.

The SPD's co-chair, Lars Klingbeil, is expected to be appointed as finance minister and vice chancellor, which reflects a significant achievement for the party despite its record low of 16.4% in the election. The coalition agreement stipulates key reforms, including plans to raise the minimum wage to €15 per hour and to make substantial investments in infrastructure while maintaining pensions at 48% of the average wage. This reflects the SPD's leveraging of their necessity in the coalition, as both parties had ruled out cooperation with the far-right AfD, according to Reuters and South China Morning Post.

Despite these gains, the coalition deal has faced criticism, particularly from the SPD's youth wing, the Jusos, due to concessions on migration rules and the failure to secure tax reforms aimed at the wealthy. These concessions have raised concerns about the party's direction and its responsiveness to its base, as many members called for a rejection of the treaty. Political analysts have noted that, although the coalition may bring stability, a rejection would plunge German politics back into uncertainty shortly after the last coalition's collapse, according to Reuters, South China Morning Post, and India Times.