Breakthrough in exploratory talks CDU/CSU and SPD: double passport stays - more rejections - new citizens' income

The CDU, CSU and SPD have successfully concluded their exploratory talks and are preparing for coalition negotiations. A joint paper is to serve as a basis with the aim of concluding the negotiations by Easter.

The first step towards a black-red federal government has been taken. Just under two weeks after the Bundestag elections, the CDU, CSU and SPD negotiators have concluded their exploratory talks. Agreement has been reached on a whole range of issues, said CDU leader Friedrich Merz in Berlin.

A joint paper should form the basis for coalition negotiations, which could possibly begin next week, said Merz.

In the exploratory talks so far, the CDU/CSU and SPD have explored differences and common ground. Anyone entering into coalition negotiations, however, does so with the clear intention of forming a joint government. However, failure cannot be ruled out at this stage either.

The likely future Chancellor Friedrich Merz has set himself the goal of being through with the negotiations by Easter.

The CDU/CSU clearly won the Bundestag elections on February 23 with 28.5 percent. The SPD finished behind the AfD (20.8 percent) with 16.4 percent. There is no alternative to a black-red coalition because the black-green coalition does not have a majority and the CDU/CSU has clearly ruled out working with the AfD.

The negotiators have already reached initial agreements.

The CDU/CSU and SPD have agreed on a common course on migration policy in their exploratory talks. According to the agreement, people applying for asylum should also be turned back at land borders in future - but only in coordination with neighboring countries.

According to the Federal Ministry of the Interior, around 80,000 unauthorized entries were detected last year, with around 47,000 cases being turned back, for example if someone presented forged documents or because an entry ban was imposed following a deportation.

The number of people applying for asylum in Germany has recently fallen. In January and February, the Federal Office for Migration and Refugees (Bamf) received 26,674 initial applications and 3,273 subsequent applications. This means that the number of first-time applications between the beginning of January and the end of February was around 43% lower than in the same period last year. Once again, most applications were submitted by people from Syria.

According to Merz, the CDU, CSU and SPD want to reinstate the goal of "limiting" migration in the Residence Act.

The citizenship law reformed by the traffic light coalition is to remain in place. According to a joint paper, the CDU, CSU and SPD agreed in principle during their exploratory talks to retain the shortened waiting periods for naturalization and the double passport for non-EU citizens.

It is to be examined whether it would be constitutionally possible to revoke the German citizenship of terror supporters, anti-Semites and extremists who call for the abolition of the free and democratic basic order if they have another citizenship.

The new citizenship law passed by the SPD, Greens and FDP only came into force on June 27. It stipulates that naturalization is now only possible after five years instead of the previous eight - provided the applicant meets all the conditions. This includes, for example, the applicant being able to support themselves.

In the case of special integration achievements, foreigners can become German citizens after just three years. Prerequisites for this faster naturalization are good performance at school or at work, excellent language skills or voluntary work.

The CDU/CSU and SPD want to change the current citizen's allowance system. "We will redesign the current citizen's benefit system to create a basic income for jobseekers," said CDU leader Friedrich Merz after crucial exploratory talks between the CDU/CSU and SPD in Berlin. He announced: "People who are able to work and repeatedly refuse reasonable work will have their benefits completely withdrawn." SPD leader Lars Klingbeil said that those who completely refuse to work cannot count on the same support, which is fair and just.

Merz also announced that, in line with the European Working Time Directive, the possibility of weekly instead of daily maximum working hours would be created in the Working Time Act. "And we will make overtime pay tax-free if it exceeds the collectively agreed or collectively agreed full-time working hours."

During their exploratory talks, the leaders of the CDU/CSU and SPD declared Germany's internal and external defense capability to be a central goal in the event of a joint government. They wanted to assume responsibility in Europe and work with Germany's partners to strengthen the European Union's defense capabilities and competitiveness. "One thing is clear: Germany will continue to stand by Ukraine's side," reads the paper agreed by the negotiators.

The defense capability of Germany and Europe should be secured with additional funds, "because the protection of our freedom is indispensable", it says. Reference is made to the plan for a new special fund for infrastructure, including for civil defense and civil protection - as well as the reform of the debt brake for the defense budget.

The funds from the existing special fund for the Bundeswehr would have to flow out quickly. The CDU/CSU and SPD want to "present a planning and procurement acceleration law for the Bundeswehr as well as a priority list of armaments to be procured quickly in the first six months after forming the government". The list of priorities will be drawn up in close consultation with the Ministry of Defense.

As part of their exploratory talks, the CDU/CSU and SPD have also agreed relief for the agricultural sector and an increase in the commuter allowance. "Withdrawing the tax on agricultural diesel" is "an important signal to agriculture", said CSU leader Markus Söder on Saturday. And the higher commuter allowance is also important "for many people in rural areas throughout Germany".

In the course of the budget crisis of the traffic light government, it had decided to cut subsidies for farmers for agricultural diesel at the end of 2023. This decision was the main reason behind the months-long wave of protests by farmers in Germany. "We will fully reintroduce the agricultural diesel rebate," the exploratory paper now states.

The commuter allowance, i.e. expenses for travel between home and work that can be claimed per kilometer as a reduction in taxable income, particularly benefits people who travel long distances to work by car. According to the exploratory paper, this is intended to ease the burden on the middle class. An income tax reform is also planned specifically for this group.

The CDU/CSU and SPD want to permanently reduce the sales tax on food in restaurants to 7%. This is what CSU leader Markus Söder said, and it is also clear from the exploratory paper that both sides agreed on after days of negotiations. The aim is to reduce the burden on restaurants and consumers, according to the paper.

VAT in the catering sector had already been reduced from 19% to 7% during the coronavirus pandemic, but only temporarily.

To ease the burden on companies and private households, electricity tax is to be reduced to the minimum level permitted in the EU. This should lead to a reduction of at least five cents per kilowatt hour. The CDU/CSU and SPD also want to halve the transmission grid fees, a component of the electricity price.

In order to boost the sluggish demand for electric cars, the CDU/CSU and SPD are once again planning a "purchase incentive". An existing purchase incentive was abruptly halted by the traffic light coalition at the end of 2023 due to budgetary constraints, after which demand dropped noticeably.

Anyone who continues to work voluntarily in retirement should be able to earn up to 2,000 euros a month tax-free. The so-called mothers' pension is to be extended: For children born before 1992, three instead of the current maximum of two and a half years of child-raising are also to be credited towards the pension.

The CDU/CSU and SPD are sticking to the independent minimum wage commission. For the further development of the minimum wage, this should be "based both on the development of collective agreements and on 60 percent of the gross median wage of full-time employees", as stated in the paper. "In this way, a minimum wage of 15 euros can be achieved in 2026."

The rent freeze is to be extended for an initial period of two years. This instrument for tenant protection would otherwise have expired at the end of 2025.

In view of ever-increasing costs running into billions, the CDU/CSU and SPD want to initiate "a major care reform".

According to CDU leader Friedrich Merz, the CDU/CSU and SPD are also holding "intensive talks" with the Greens in order to obtain the necessary majority in the Bundestag for the agreed financial package. In order to gain the approval of the Greens, it is planned, among other things, that funds earmarked for infrastructure can also be used for climate and environmental projects, Merz said on Saturday. He said he was confident that "there is a common way to achieve an amendment to the Basic Law".

However, the Greens have harshly criticized the results of the exploratory talks between the CDU, CSU and SPD. Instead of solving structural problems, the parties wanted to throw money at everything, as in previous black-red governments, explained party leader Franziska Brantner in Berlin. "That is poison for our country." Co-party leader Felix Banaszak emphasized: "We are further away from agreement today than we have been in recent days."