Overview

• The public service tariff agreement guarantees staged wage increases and enhanced work-time flexibility for over 2.5 million employees, effective April 2025.
• Union Verdi criticizes the deal as a setback, citing extended working hours and restrictive policies as major concerns.
• CDU/CSU and SPD have finalized a coalition agreement after weeks of negotiations, paving the way for a new government led by Friedrich Merz as Chancellor.
• Key policy disputes on tax reforms, pensions, and energy remain unresolved, reflecting ongoing tensions within the coalition framework.
• The SPD plans a member vote on the coalition contract, while CDU/CSU leadership faces internal dissent over perceived concessions.