Overview

• CDU, CSU and SPD leaders pledged a more constructive approach after weeks of public disputes, with Friedrich Merz and Bärbel Bas signaling reconciliation.
• The coalition aims to agree outline points for a Bürgergeld overhaul by year-end, with Merz pushing for about €5 billion in annual savings and a shift to a “new basic security,” though specifics are still open.
• Finance Minister Lars Klingbeil identified at least a €30 billion gap in the 2027 federal budget and called for a swift overall package, while requesting initial savings from ministries.
• Merz said tax increases were not part of the talks, leaving revenue options politically contested as the coalition weighs how to balance savings and growth measures.
• To support industry, the chancellor will convene a steel summit and an automotive dialogue, and the government plans an investment-acceleration law to speed spending from the €500 billion infrastructure fund.