The winners of Germany’s September election have reached a coalition agreement that marks a significant change in political direction of Europe’s largest economy after 16 years of Christian Democratic-led coalitions under Angela Merkel. It signals a change of pace: the coalition agreement shows that the social democratic SPD, the Greens, and the liberal FDP are aiming higher than their lowest common denominator.
The three parties have common values in two important areas. One is social liberalism, expressed in a series of commitments ranging from more permissive drugs policy to easier access to citizenship. The other is a strong commitment to much more public and private investment in a decarbonised and digital economy.
If the incoming “traffic light coalition” makes good on its ambitions, it could inject a dose of much-needed dynamism into both German and European policymaking, and do so in line with the green and digital priorities adopted by the EU and most of its member states. But successful coalition talks do not guarantee an easy cohabitation in office.