*

Chancellor-in-waiting Merz names first members of future

cabinet

*

Utility executive Katherina Reiche to become economy

minister

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Ally Johann Wadephul to be foreign minister

*

SPD members must still vote on coalition, results due this

week

(Adds more context, paragraphs 2-5, 7-8, analyst quote,

paragraph 16, details on SPD, paragraphs 17-18)

By Andreas Rinke and Sarah Marsh

BERLIN, April 28 (Reuters) - Germany's

Chancellor-in-waiting Friedrich Merz on Monday named utility

executive Katherina Reiche as his likely economy minister and

foreign policy expert and ally Johann Wadephul as foreign

minister, as part of a raft of first appointments.

Merz's CDU/CSU conservatives, who topped February's

elections, clinched a coalition deal with the centre-left Social

Democrats (SPD) earlier this month, as they race to form a new

government to deal with an array of global crises.

The two parties aim to revive growth in Europe's largest

economy just as a global trade war sparked by U.S. President

Donald Trump's sweeping import tariffs threatens recession and

to ramp up defence amid strains in the transatlantic alliance.

Merz hopes that his government will be able to avoid the

infighting that plagued the three-party coalition of his Social

Democrat predecessor Olaf Scholz - and eventually led to its

collapse last November - and that it can prove more decisive.

Even before taking office, Merz and the SPD managed to

push a historic fiscal package through parliament that will

enable the next government to drastically boost

spending

on infrastructure and defence.

The coalition deal accorded Merz's Christian Democrats (CDU)

the economy and foreign ministries, their Bavarian sister party

the Christian Social Union (CSU) the interior ministry and the

SPD the defence and finance ministries.

ECONOMY PLANS

The new coalition's plans include cutting taxes for

middle and lower income Germans, reducing a corporate tax,

lowering energy prices, supporting the electric car industry and

scrapping a disputed supply chain law.

With the far-right Alternative for Germany (AfD)

breathing down its neck, the coalition has signalled a tougher

stance on migration. It has also vowed strong support for

Ukraine and higher defence spending as Europe faces a more

hostile Russia.

Reiche, a former lawmaker, has been CEO of regional

energy infrastructure firm Westenergie - a division of E.ON

, Europe's largest operator of power grids - since

early 2020.

Reiche, 51, served as a member of Germany's parliament

from 1998 until 2015 and held roles as parliamentary secretary

at the environment and transport ministries.

Prior to her current role, Reiche - who sits on the

supervisory board of automotive supplier Schaeffler ( SCAFF ) -

was the chief executive of Germany's VKU association of local

utilities.

She takes over from Robert Habeck of the Greens, who

held the economy portfolio during Europe's energy crisis and

Russia's invasion of Ukraine.

Wadephul, a member of Germany's parliament since 2009,

is deputy leader of the CDU/CSU conservative faction in

parliament responsible for foreign and defence topics.

He will succeed Annalena Baerbock of the Greens in the

position, who often dissented on foreign policy from Chancellor

Olaf Scholz from the SPD.

The fact the conservatives will hold both the

chancellery and the foreign ministry, and that Wadephul is a

Merz ally, indicates there will likely be a clearer German line

on foreign policy, which allies will likely appreciate, say

analysts.

"Merz has created the conditions and structures to be a

very strong chancellor in foreign policy," said Jana Puglierin,

head of the Berlin office of the European Council on Foreign

Relations think-tank. "He will be responsible for relations with

the United States, China and Russia."

The SPD will nominate its ministers after party members

have approved the coalition deal in a vote, party leader Lars

Klingbeil has said. The results of the vote are expected on

Wednesday.

Merz is expected to be sworn into office on May 6.