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German Coalition Talks Enter Critical Phase with Tax Policy at Center Stage

Union and SPD leaders express optimism but remain divided on tax increases and migration policies as negotiations aim for Easter deadline.

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Overview

  • Markus Söder of the CSU reiterated opposition to tax increases, advocating instead for tax cuts and fiscal discipline.
  • The SPD, led by figures like Anke Rehlinger, continues to push for higher taxes on top earners, citing fairness and campaign promises.
  • A 19-member main negotiation group from CDU, CSU, and SPD is meeting in Berlin to resolve disputes over tax, migration, pensions, and energy policy.
  • Preliminary agreements have been reached on issues like a €500 billion infrastructure fund, but significant challenges remain in key policy areas.
  • Both parties remain optimistic about forming a coalition by Easter, with SPD members set to vote on the final agreement.