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Germany Finalizes Coalition Agreement for New Government

CDU/CSU and SPD confirm coalition deal with ambitious reforms, but financing uncertainties remain unresolved.

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Overview

  • The CDU/CSU and SPD have finalized a 146-page coalition agreement, setting the foundation for Germany’s new government.
  • The agreement includes plans for economic reforms such as tax relief, increased support for families, and infrastructure investments, though many measures depend on financing availability.
  • Migration policies aim to curb irregular immigration, suspend family reunifications, and strengthen deportation measures while preserving the right to asylum.
  • Disagreements persist over funding key initiatives like the 15-euro minimum wage and the expanded Mütterrente, with all measures subject to a strict financing reservation.
  • Ministerial portfolios have been distributed, with the CDU securing the Chancellor’s office and key economic ministries, while the SPD takes Finance and Defense.