Germany’s Friedrich Merz agrees deal to form new government with rival party

Friedrich Merz has reached an agreement to form a new government (AP Photo/Ebrahim Noroozi)

The leader of Germany’s Christian Democratic Union party Friedrich Merz has sealed a deal to form a new government with the country’s Social Democrats.

The new government’s priorities are to spur economic growth, ramp up defence spending, take a tougher approach to migration and catch up on long-neglected modernisation.