Coalition crisis in Germany: CDU and SPD at the decisive stake!

Coalition crisis in Germany: CDU and SPD at the decisive stake!

The coalition negotiations between the CDU, CSU and SPD are entering the decisive phase. On Monday evening, discussions about a new “grand” coalition will continue, as [oe24] reports. This decision follows a round of negotiations that took place on Saturday in the SPD building. CSU regional group leader Alexander Dobrindt emphasizes that smaller rounds should help solve problems. Although details of the content of the talks have not been published, Dobrindt is optimistic and speaks of progress.

The negotiators from the major parties sat together for almost five hours on Saturday. CDU deputy leader Kathrin Prien expressed herself positively about the results of the talks and the need to find a “broad line for solutions”. The results of 16 working groups that have been working on the issues since March 13th are of central importance in the coalition negotiations.

Challenges of negotiations

The main negotiating group consists of 19 leading representatives from both sides, including party leaders Friedrich Merz (CDU), Markus Söder (CSU), Lars Klingbeil and Saskia Esken (SPD). Merz has high expectations of the negotiations and is aiming for a coalition agreement by Easter. However, he recognizes that these conversations take time to produce quality results. In Merz's opinion, a change in economic and migration policy is urgently needed.

A central point of contention is financial policy. The Union wants to provide tax relief for higher earners, while the SPD advocates increasing the top tax rate. There are also differences when it comes to corporate tax: While the Union is aiming for a reduction from 2026, the SPD is only planning minimal adjustments from 2029. The coalition negotiations show that differences in tax policy and migration policy remain.

Financial restrictions and settlements

The negotiators emphasize that financial resources are limited. Esken explains that many wishes have been expressed, but reality has its limits. Merz warns against the illusion of unlimited spending through new debt. A debt package of 500 billion euros for investments in infrastructure is currently being discussed. The negotiators must demonstrate their skills in order to implement the announced policy changes.

The negotiations are under high pressure as Merz's credibility within his own party and among voters has suffered. There are still a good three weeks left until Easter, during which the chief negotiators from the CDU, CSU and SPD will be required to reach an agreement. Nevertheless, Merz is expected to be sworn in as chancellor in early May rather than the week after Easter, underlining the urgency of the talks.

However, the coalition negotiations are not only characterized by financial disputes. There are also different views between the parties on issues such as pension levels, the use of combustion engines and the debate about conscription, which makes agreement even more difficult. The next few days and weeks will be crucial in reshaping Germany's political landscape, as [tagesschau] and [ZDF] make clear.