German Coalition Negotiations Near Final Stages as Leaders Express Optimism

CDU, CSU, and SPD work through remaining disputes after resolving major issues, including a €500 billion credit package, while economic concerns and migration policy debates persist.

• Markus Söder has expressed confidence that CDU, CSU, and SPD will finalize a coalition agreement soon, following progress in negotiations.
• A €500 billion credit package for defense, infrastructure, and climate protection has been agreed upon, marking a major step forward in talks.
• Tax policy remains a contentious issue, with the Union opposing tax increases and advocating for the abolition of the solidarity surcharge and reductions in corporate and income taxes.
• Economic organizations have raised alarms about proposed policies, warning they could exacerbate Germany's economic challenges and hinder growth.
• Friedrich Merz is reportedly planning stricter migration controls, including border rejections and cooperation with neighboring countries to address illegal migration.

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