Germany's conservative CSU approved a coalition deal with its CDU sister party and the Social Democrats (SPD) on Thursday, a day after they presented a programme to revive growth in Europe's biggest economy and take a tougher line on migration.

Germany's conservative Christian Social Union (CSU), one of the three partners in the incoming national government, has approved the parties' coalition agreement, dpa learnt on Thursday, one day after it was presented in Berlin.

Germany's chancellor-in-waiting and leader of the Christian Democratic Union party (CDU) Friedrich Merz, Christian Social Union (CSU) leader and Bavarian Premier Markus Soeder, co-leaders of the Social Democratic party (SPD) Saskia Esken and Lars Klingbeil walk to attend a press conference after reaching an agreement on their coalition government in Berlin,

German conservatives under Friedrich Merz clinched a coalition deal with the centre-left Social Democrats (SPD) on Wednesday, aiming to revive growth in Europe's largest economy just as a global trade war threatens recession.

German Chancellor-in-waiting Friedrich Merz has unveiled a new coalition deal between the country’s two major centrist parties in a bold and optimistic speech in Berlin on Wednesday, hours after it was announced that an agreement to form a new government had been reached.

Friedrich Merz sealed a coalition deal with the Social Democrats, paving the way for the German conservative leader to become chancellor at a time of acute domestic and geopolitical turmoil.