Overview
- 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.