CDU and SPD Leaders Take Charge as German Coalition Talks Enter Final Phase

Negotiations intensify with unresolved disputes over tax policy, military spending, and migration as the Easter deadline approaches.

The CDU and SPD leadership convened on March 28 to address key disagreements in coalition negotiations, including tax reforms, defense spending, and migration policies.
Both parties face significant budgetary challenges, with a projected deficit of 30-40 billion euros complicating funding for proposed measures.
The CDU is advocating for increased military spending, targeting up to 3.5% of GDP, while the SPD has yet to commit to a specific figure.
The SPD seeks progressive tax reforms to increase contributions from high earners, a stance opposed by the CDU, which favors tax cuts.
Party leaders, including Friedrich Merz and Lars Klingbeil, have emphasized fiscal discipline and realistic goals, signaling potential compromises to finalize the coalition agreement by Easter.