In Germany, coalition talks between the Christian Democratic Union (CDU), the Christian Social Union (CSU), and the Social Democratic Party (SPD) have entered a crucial phase. The potential Chancellor, Friedrich Merz, is optimistic about forming a government soon, with a tentative deadline before Easter, though early May seems more feasible. The negotiations are focused on several contentious issues, such as tax policies, migration, retirement, and military service. The CDU and CSU prioritize tax cuts, while the SPD prefers delaying such measures, seeking higher taxes on the wealthy instead.
Migration policy remains a significant sticking point, with the SPD facing pressure to adopt a more stringent approach. Despite these challenges, both sides exhibit a willingness to compromise. The SPD's top negotiators have expressed satisfaction with the progress made so far, though the CSU demands further concessions from the SPD regarding migration.
Economic concerns add another layer of complexity. Business associations warn that certain electoral promises, like a €15 minimum wage and the tariff loyalty law, might harm Germany's economic standing. They advocate for reforms such as tax cuts and reduced bureaucracy to enhance the country's appeal to investors.
The ongoing discussions are also marked by disagreements on the solidarity surcharge, with CSU leader Markus Söder calling for its removal, while SPD's Manuela Schwesig supports its retention. As negotiations continue, all parties aim to present a united government, ready to address Germany's pressing issues.
