New coalition in Germany is in place Returns of asylum seekers, citizen's allowance to be tightened up

Lea Oetiker

9.4.2025

The CDU/CSU and SPD agree on a coalition agreement. The parties plan to present the paper on Wednesday afternoon.

A good six weeks after the German federal elections, the CDU, CSU and SPD have concluded their negotiations on the formation of a new government and agreed on a coalition agreement.

In the future federal government, the CDU/CSU will hold the Foreign Ministry, the Interior Ministry and the Economics Ministry, among others. According to the coalition agreement between the CDU/CSU and SPD published on Wednesday, the SPD will receive the Ministry of Finance and the Ministries of Labor and Defense.

According to the agreement, a total of six ministries will go to the CDU, three ministries to the CSU and seven ministries to the SPD.

There are also a number of planned changes, particularly in the area of asylum. Chancellor-designate Friedrich Merz has announced a repatriation offensive and a halt to admission programs. In addition, family reunification will no longer be so easy. The "turbo naturalization" after three years will be abolished.

However, the reduction of the waiting period for normal naturalization from eight to five years and the double passport permit will be retained.

Significant tightening of the citizens' allowance

The Christian Democrats and Social Democrats are planning significant tightening of the current citizens' allowance for the long-term unemployed.

According to the agreement, the current system is to be transformed into "a new basic income support for jobseekers". Job placement is to have priority for people who are able to work. According to the draft of the black-red coalition agreement, it is planned to remove barriers to placement.

Obligations to cooperate and sanctions are to be tightened "in line with the principle of promoting and demanding". Sanctions are to be enforced more quickly than at present. Benefits are to be withdrawn completely if people who are able to work repeatedly refuse reasonable work. Grace periods for assets are to be abolished; the amount of the grace period is to be linked to lifetime earnings.

Overall, there should always be incentives for recipients of basic income support and other social benefits to earn a higher income through work or to take up a new job. Up to now, there have been constellations in which an increase in working hours, for example, has paid off very little for people on a citizen's income.

Military service is also being revised. In Germany, this is currently voluntary. Merz has announced that this should remain the case - with a loophole. "We hope that we will find enough people with this system, which is initially based on voluntary service," says Merz.