Image courtesy of : (Sandro Halank, Wikimedia Commons, https://commons.wikimedia.org/wiki/User:Sandro_Halank)
The formation of Germany's new coalition government between the CDU/CSU and the SPD brings significant changes across various sectors. Berlin's Mayor Kai Wegner highlights the promise of a stable and reliable government. However, Finance Senator Stefan Evers warns of potential revenue declines due to planned tax relief measures. He hopes reforms in social spending will provide financial relief.
The restaurant industry will benefit from a permanent sales tax reduction, while housing policies such as the rent price brake and state subsidies for construction are welcomed, despite some SPD demands being overlooked. Immigration policies might tighten, focusing on deportations and reducing bureaucracy, although these measures are not seen as revolutionary for economic policy.
Citizens receiving 'Bürgergeld' face stricter sanctions and new obligations, reflecting a shift in welfare policy. Education Senator Katharina Günther-Wünsch is speculated to take a federal role in Family Affairs, indicating potential changes in educational governance.
The coalition's economic plans include expanding the 'Mütterrente,' maintaining the pension level at 48%, and increasing the minimum wage to 15 euros by 2026. Tax exemptions for overtime and adjustments in income tax, energy prices, and other levies aim to ease financial burdens.
A significant shift is evident in foreign policy, moving away from Annalena Baerbock's 'feminist' approach to prioritize national interests. This includes development aid benefiting German businesses and cooperation tied to deportation agreements.
Critics, including economists, challenge the coalition's pension plans, suggesting a lower pension level and later retirement age for sustainability. Meanwhile, activists like Fridays for Future demand stronger climate actions, criticizing the coalition's inadequate measures, particularly regarding coal and gas infrastructure expansion.
