Union and SPD Set Stage for Coalition Talks

Germany's Union and SPD parties have reached a preliminary agreement to proceed with coalition negotiations following the federal election. This agreement focuses on enhancing military capabilities, addressing migration, and stimulating economic growth. Key measures include reducing electricity taxes, introducing corporate tax reforms, and reforming the citizen's allowance system. The parties aim to limit irregular migration by enhancing border controls and are considering the suspension of family reunification for asylum seekers.

Economic plans feature a 500-billion-euro investment fund aimed at boosting infrastructure, defense, and digital transformation. Tax relief measures are also on the table, with proposals to lower income tax and VAT for gastronomy, alongside raising the minimum wage to 15 euros. The Union and SPD are keen on ensuring support for industries through energy cost reductions.

The agreement also touches upon social policies, with plans to introduce an active pension scheme and expand maternal pensions. A shift towards a new form of basic security for job seekers is proposed, emphasizing job placement over unconditional benefits.

Criticism from opposition parties, including the Greens and the AfD, highlights concerns over the migration policies and financial commitments. Despite differing views, the Union and SPD see this as a solid foundation for forming a stable government, with hopes of concluding final coalition agreements by spring.