CDU/CSU and SPD Leaders Advance Coalition Talks in Critical Phase

Negotiators focus on bridging gaps in financial policy, migration, and taxation as they aim for an Easter deadline to finalize the agreement.

Top negotiators from CDU, CSU, and SPD convened in Berlin for high-level discussions to resolve key disputes and finalize a coalition agreement.
Major sticking points include tax increases proposed by SPD, CDU/CSU’s push for corporate tax cuts, and disagreements over migration policy at Germany’s borders.
A projected budget deficit of up to 600 billion euros by 2029 is driving debates on fiscal priorities, with both parties emphasizing the need for spending cuts.
Both sides have agreed to increase defense spending, with CDU/CSU advocating for a target of 3.5% of GDP, while SPD remains cautious about committing to exact figures.
An SPD membership vote on the final coalition agreement, which could delay government formation until May, remains a significant procedural hurdle.