Germany German coalition negotiations on the home straight
The CDU, CSU and SPD are entering the home straight in the coalition negotiations - and it could be a tough one. The main negotiators will continue their talks on Monday. There are still many sticking points. This is the current status:
30.03.2025, 23:01
SDA
Decisive phase
Saarland Minister-President Anke Rehlinger (SPD) said on ARD television on Friday, as is the case in sport: the last forces must be mobilized, especially in the home straight. CSU leader Markus Söder said on ARD's "Bericht aus Berlin" on Sunday evening: "We will get it done." The CDU, CSU and SPD already have the hardest part behind them. Söder is referring to the decision on the huge loan package for additional spending on defense, infrastructure and climate protection.
Rehlinger and Söder belong to the "19 group". These are the main negotiators from the CDU, CSU and SPD. They discuss the results of the 16 working groups - although there was a lot of agreement, there were also many unresolved issues. Following negotiations at the SPD headquarters on Saturday, CSU state group leader Alexander Dobrindt spoke of the "clearing phase".
Continuation on Monday
On Monday evening, the top-level round is to meet again, this time at the CDU headquarters. Dobrindt said that before the big round meets on Monday evening, there will be smaller rounds that have been set up as "problem-solving rounds".
New government in place by Easter?
The probable new Federal Chancellor Friedrich Merz (CDU) had originally aimed to form a new government by Easter at the latest. Easter is less than three weeks away. In order to achieve this, however, an agreement would have to be reached in the coming week. This is because the SPD has announced that it will let its members decide on a coalition agreement within ten days of reaching an agreement with the CDU/CSU. However, Merz and SPD leader Lars Klingbeil have recently emphasized that thoroughness takes precedence over speed. It therefore seems questionable whether the coalition agreement will be in place by Easter - also because there are still some major issues to be resolved.
Finances are a sticking point
Finances are one of the biggest sticking points. The federal budget for 2025 and the financial planning for the coming years already have billions in gaps - although the loosening of the leeway for defense opens up new scope. The 500 billion euro special fund for infrastructure and climate protection is to be used for additional investments.
"We will have to make extensive savings," said CDU leader Friedrich Merz. In addition to the financial planning for the federal budget, he named the containment of irregular migration and the competitiveness of the economy as priorities for the potential new government. The economy is in crisis after two years of recession. Associations are exerting pressure and calling for comprehensive reforms.
Additional expenditure
There are already plans for billions in new spending in the coalition negotiations. For example, an extension of the maternity pension was agreed in the exploratory paper, which the CSU is insisting on. In addition, billions have been promised in electricity price cuts and an increase in the commuter allowance.
A reduction in corporate taxes would also cost a lot. However, this is still controversial, as are reductions in income tax - the SPD wants to increase the top tax rate in return, while the CDU/CSU is opposed. Söder confirmed on ARD television that tax increases were completely out of the question. The CDU/CSU had made an election promise to reduce corporate and income taxes.
The Minister President of Mecklenburg-Western Pomerania, Manuela Schwesig (SPD), said on ARD television that the SPD wanted broad relief for citizens with small and medium incomes. If you want relief, you have to say where the money is coming from, she said, referring to the CDU/CSU.
There are also controversial proposals from the working groups. Example: In the family working group, the SPD advocated free lunches for children in daycare centers and schools - at an annual cost of 11 billion euros, according to the paper. The CDU/CSU rejects this.
No "make a wish"
Merz said on Friday that he had the feeling that the headline of some working groups was: "Make a wish". He added: "It will now be our task to reduce this to the extent possible."
There is also great potential for savings. For example, a switch away from underground cables to overhead lines in the expansion of the electricity grid would save billions in costs, according to one paper. In addition, a reform of the citizen's allowance, for example, could save billions from the Union's point of view.
Other points of contention
In migration policy, the rejection of asylum seekers at the borders is a major point of contention. The exploratory paper states that this should be possible "in coordination with our European neighbors". However, opinions between the CDU/CSU and SPD differ as to whether this means that neighboring states should only be informed of this procedure or must agree to it.
Other sticking points include: should there be a new purchase premium for e-cars? Should the suspension of compulsory military service be lifted? How exactly should the pension level be secured? The CDU, CSU and SPD still have many unresolved issues to resolve.
