The coalition negotiations between the CDU/CSU and SPD are proving to be complex and fraught with challenges. The parties face significant hurdles, particularly in areas like migration, taxation, and social policy. Friedrich Merz, leader of the CDU, emphasizes the need for caution regarding financial policies, warning against the belief that increased spending through debt is a solution.
The discussions are marked by tensions, as both parties must bridge gaps after a competitive election season. SPD leader Lars Klingbeil acknowledges the rough path ahead, emphasizing the necessity for collaboration given the electoral mandate.
One of the core issues is the economic approach, where differences are stark. The CDU seeks to lower corporate taxes and maintain the current top income tax rate, while the SPD proposes increasing taxes on high earners and introducing a wealth tax. These differences reflect broader ideological divides that must be reconciled.
Climate policy is another contentious topic. The Greens criticize the coalition's approach, fearing it undermines climate goals by delaying coal phase-out and diluting environmental laws. Meanwhile, internal CDU dissent arises, with younger members pushing for pension reforms and reinstating military conscription.
Despite these challenges, both parties express a commitment to reaching an agreement. They recognize the absence of other viable political majorities, urging the need for consensus to form a stable government. The goal remains to finalize negotiations by early May, allowing the new administration to address Germany's pressing issues.
