German parties reach deal to form new govt

BERLIN, Apr 09 (AP): Friedrich Merz, the leader of the centre-right Christian Democratic Union, is expected to become Germany's next leader under the agreement, replacing outgoing Chancellor Olaf Scholz. The parties involved sent an invitation to a news conference on the coalition deal at 3pm. (1300 GMT).

Merz's two-party Union bloc emerged as the strongest force from Germany's election on February 23. Merz turned to the Social Democrats, Scholz's center-left party, to put together a coalition with a parliamentary majority.

It's still going to be a little while before parliament can elect Merz as chancellor, perhaps in early May. Before that can happen, the coalition deal will need approval in a ballot of the Social Democrats' membership and by a convention of Merz's CDU.

Details of the agreement weren't immediately available.

But already last month, the two sides pushed plans through parliament to enable higher defense spending by loosening strict rules on incurring debt and to set up a huge infrastructure fund that's aimed at boosting the stagnant economy.

That was an about-turn for Merz, whose party had spoken out against running up new debt before the election without entirely closing the door to future changes to Germany's self-imposed "debt brake."

The election took place seven months earlier than planned after Scholz's unpopular coalition collapsed in November.