Overview

• Coalition negotiations are ongoing, with financial policy remaining the primary obstacle as CDU, CSU, and SPD struggle to reconcile tax and spending priorities.
• The SPD pushes for higher taxes on the wealthy to fund initiatives, clashing with the Union's preference for spending cuts and tax relief.
• A newly announced 10% US tariff on imports adds urgency to the talks, intensifying concerns about Germany's export-driven economy.
• Despite optimism from negotiators about reaching a deal by the end of the week, unresolved issues suggest talks will extend into next week.
• Smaller working groups are addressing specific policy disputes, but major decisions are expected to require direct intervention from top party leaders.