2025-04-09 16:55:09
Politics

Germany's New Coalition: A Path Forward Amid Challenges

Image courtesy of : AFP (RALF HIRSCHBERGER)

Germany's political landscape is set for transformation as the CDU/CSU and SPD form a coalition government, with Friedrich Merz poised to become Chancellor. This alliance promises significant economic and policy reforms, addressing pressing issues such as migration, defense, and climate efforts.

Economic measures include tax reductions for businesses and individuals, aimed at revitalizing growth in Europe's largest economy. The coalition agreement outlines a commitment to infrastructure investment and seeks to modernize Germany's digital landscape through a new ministry dedicated to digitalization and state modernization.

On the social front, the coalition remains committed to maintaining Germany as an immigration-friendly nation, while introducing a 'return offensive' to manage irregular migration. The right to asylum remains untouched, highlighting a balanced approach to migration policy amid rising far-right sentiments.

The coalition also prioritizes climate goals, reaffirming Germany's aim for climate neutrality by 2045. However, environmental groups express concerns over potential dilutions in emissions targets. The coalition plans to support the electric vehicle industry and implement energy price reductions.

Defense spending is set to increase, emphasizing Germany's role in international stability. The coalition faces the challenge of addressing both domestic pressures and global tensions, notably with the far-right opposition gaining momentum.

This agreement marks a pivotal moment for Germany, offering a roadmap to navigate economic and social challenges while maintaining robust EU ties. The coalition aims to set Germany 'back on track,' ensuring stability and progress in the coming years.

DER SPIEGEL
9. April 2025 um 15:05

Union and SPD present coalition agreement: »Germany is back on track« - DER SPIEGEL

Coalition agreement: Reduction of corporate tax, reform of the citizens' allowance, streamlining of the state apparatus with a reduction in the number of federal commissioners, a new digital ministry, extension of the rent price brake. Merz announces a "new course in migration policy", but not as sharp as expected. The right to asylum remains inviolable, Germany remains an immigration country. The pension level is set at 48%, the coverage of the costs for abortions is expanded. 17 ministries,..
Deutsche Welle
9. April 2025 um 10:34

Coalition Agreement Established, Union and SPD Reach Agreement

The Union parties and SPD have agreed on a government program. Key points include reforms in migration, economy, and defense. The SPD will receive seven ministries, including finance and defense. The CDU will occupy six departments and the foreign ministry. The CSU will receive three ministries, including the interior ministry. Merz is expected to be elected as Chancellor in early May.
AFP
9. April 2025 um 15:27

Coalition agreement with many compromises: What the Union and SPD have agreed upon

"Responsibility for Germany", a 144-page contract between the Union and SPD, includes compromises on taxes, migration and pensions. Border controls, asylum rejections and a "repatriation offensive" are planned. Corporate tax will decrease from 2028, turbo depreciation will be added. Energy prices will decrease due to tax cuts. Gastronomy VAT will be 7% from 2026, income tax for middle incomes and the commuter allowance will increase. Minimum wage will be 15 euros, the citizen's allowance will..
CW

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