Germany is poised to have a coalition government after Friedrich Merz’s centre-Right CDU party secured an agreement with the centre-Left SPD.

Mr Merz, who won last February’s elections, will give a press conference on Wednesday afternoon outlining the terms of the agreement.

The AfD, which came second place in the elections, was frozen out of the talks because the Christian Democratic Union and the Social Democrats consider it to be too extreme.

German media reports suggest the announcement will include some tax breaks and reforms on migration, as well as a plan on how to cope with Donald Trump’s sweeping tariff reforms.

Mr Merz is expected to be sworn in as Germany’s next chancellor on May 7.