Germany's chancellor-in-waiting Friedrich Merz on Saturday said new investments and tax cuts under his incoming coalition government would make the country "economically stronger."

The new conservative leader is set to take office around May 6, when Germany's parliament is due to approve the new administration.

What did Merz say about boosting the economy?

"Our goal is clear: Germany should become economically stronger, safer, fairer and more modern," Merz said in a video message posted by his Christian Democratic Union (CDU) party.

He also said the coalition agreement between his conservative alliance and the center-left Social Democrats was the product of intense negotiations that had created a new sense of trust between the country's two major centrist parties.

"We are committed to investing in industry, providing tax relief for small and medium-sized enterprises, and ensuring a reliable energy supply," Merz said. "And we are making our country safer both internally and externally."

Merz is expected to take office four months after US President Donald Trump returned to the White House and ushered in a massive disruption of global trade.

The growing US trade war is set to worsen the outlook for the German economy, which has been struggling since the pandemic due to high energy prices, lower global demand and intense competition from China. 

Merz this week told business daily Handelsblatt, "Yes, I’m hoping for a new transatlantic free-trade accord."

Brussels is currently in negotiations with Washington to avoid 20% proposed US tariffs on goods from the European Union.

Merz, Trump approaches are miles apart

In an apparent reference to Trump's isolationist approach in contrast to his own, Merz spoke of Germany's intention to once again play a bigger role in Europe and the world, "not loudly, but reliably — not arrogantly, but in partnership."

Acknowledging the uphill battle the next government will face, Merz invoked the Easter message of hope and renewal, saying it was particularly resonant this year. 

"After dark days comes the light," he said, acknowledging the scale of the challenges Germany faces — economic, social, and geopolitical. "Nevertheless, there is reason for hope. It is up to us to shape the future."

The coalition has already agreed to a €1 trillion ($1.14 trillion) package of stimulus measures to boost Germany's defense sector, new infrastructure projects, and for climate protection programs.

Edited by: Darko Janjevic