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In a significant development, a coalition agreement has been swiftly finalised between the Union and SPD, marking the return of a functional German government. This new alliance comes at a crucial time, as the impact of US President Donald Trump's unpredictable trade policies on Germany's automotive industry has been felt deeply.

The agreement, which includes a tougher stance on migration and reforms aimed at reducing bureaucracy, is set to provide much-needed growth impulses for the nation. Ministers from the southwest, led by Thorsten Frei, the potential Chancellor's Office Minister, will ensure the smooth running of the coalition.

One of the key aspects of the agreement is the focus on infrastructure. Germany will see repairs to existing infrastructure, addressing past oversights, and investments and construction activity. This commitment is seen as an important signal, particularly for the state of Baden-Württemberg, which has been hit hard by the crisis in the automotive industry.

The state government of Baden-Württemberg is actively seeking dialogue with business leaders on the issue of tariffs, as domestic demand becomes increasingly crucial in the face of international trade uncertainties. Details such as the successful Germanyticket are also included in the coalition agreement.

Rafael Binkowski, who can be reached at 0711 66601 - 293 or via email at r.binkowski@our website, is expected to play a significant role in the smooth running of the coalition.

Friedrich Merz, the designated Federal Chancellor, has expressed optimism, stating that Germany is back on track. At 69 years old, Merz has an opportunity to demonstrate his crisis management skills, which are considered necessary to meet Trump and Putin on equal terms.

However, the agreement does not provide the names of the ministers from the southwest who are responsible for the current coalition operation. Despite this, the negotiations and quick agreement show that the three parties are ready to put their own interests aside and act quickly for the good of the country.

As the world grapples with the effects of unstable international trade routes, Germany's new coalition government is poised to set a strong growth impulse through a special fund and loosened debt brake. The hope is that this new government will steer Germany through these challenging times and towards a brighter future.