Germany's next leader, the conservative Friedrich Merz, vowed Wednesday to "move the country forward again" by boosting the economy and defence as he presented a deal to launch his coalition government by early next month.

Merz is set to take over as leader of Europe's top economy just as US President Donald Trump has sparked global trade turmoil and raised deep fears about future transatlantic security ties.

Asked at a news conference if he had a message for Trump, Merz said in English that the country would meet its defence obligations and rebuild its economic competitiveness.

"Germany is back on track," he added.

Following the February election victory of his CDU/CSU alliance, Merz has struck a deal to forge a new government with the centre-left Social Democrats (SPD) of the now caretaker Chancellor Olaf Scholz.

"The coalition agreement is a signal of a new beginning... for our country," said Merz, whose party won the elections with 28.5 percent of the vote. The far-right AfD took second place.

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