In Germany, where coalitions are the norm, governments are typically formed in two phases, with parties first holding exploratory talks and then entering into formal coalition talks.
Merz’s conservative CDU/CSU bloc and the SPD have haggled over issues such as migration and welfare payments, coming together after a bruising election campaign.
In his opening remarks, Merz promised tougher measures to tackle illegal migration, promising to act along with other European Union members.
He also said Germany should be targeting 1 per cent to 2 per cent economic growth and lower energy costs to help businesses.
“In coordination with our European neighbours, we will reject people at our shared borders, including asylum seekers,” Merz said.
“We want to take all legal measures to reduce irregular migration overall. We will massively expand border controls from the first day of our joint government, and we will also significantly increase the number of rejections with these border controls,” he added.
