Overview

• Negotiations between CDU, CSU, and SPD have entered a critical phase with unresolved disputes over tax reforms, migration, and fiscal policy.
• Economic leaders warn that proposed policies could worsen Germany's ongoing economic recession, urging reforms to promote growth and investment.
• Key sticking points include the SPD's push for higher taxes on top earners, which the CDU opposes, and disagreements over border policies for asylum seekers.
• The coalition aims to implement a €500 billion investment package, but its funding requires constitutional amendments and opposition cooperation.
• Delays are expected, with leaders prioritizing thoroughness over speed, making it uncertain whether a government will be formed by Easter.