Germany's coalition negotiations between the Union (CDU/CSU) and the Social Democrats (SPD) have entered a crucial stage, with significant disagreements still to be resolved. Key issues include taxation, migration, and climate policy. Both parties are aiming to finalize the coalition agreement by Easter, with the new cabinet to be sworn in by early May.
In the realm of finance, the SPD has proposed a wealth tax and maintaining a 48% pension level, while the Union opposes these measures, pushing instead for corporate tax cuts. Migration remains contentious, with the SPD opposing the Union's desire to reject asylum seekers at the border.
Climate policy is another area of dispute. The SPD aims to reform the heating law, whereas the Union seeks its abolition. Additionally, the parties are divided over the timeline for phasing out coal energy, with the SPD favoring a 2030 target, contrary to the Union's preference for 2038.
Amidst these debates, there is external criticism from groups like the Greens and various associations. Concerns have been raised about the possible abolition of the Information Freedom Act, which grants public access to official documents. This proposal has been labeled "alarming" by critics.
Despite these challenges, there is a shared commitment to strengthen the EU's geopolitical role. However, disagreements persist on how to achieve this, with the Union advocating for enhanced chancellor powers, a view not fully embraced by the SPD.
As the negotiations progress, the emphasis is on finding enduring compromises without succumbing to time pressures, ensuring a stable and effective government formation.
