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Germany’s CDU/CSU and SPD Finalize Coalition Agreement for New Government

The coalition deal, featuring major reforms in migration, taxation, and digitalization, now awaits internal party ratification before formal implementation.

Overview

  • The CDU/CSU and SPD have concluded negotiations on a 146-page coalition agreement, outlining their governance framework for the next four years.
  • Key reforms include stricter migration policies, such as ending expedited naturalization and suspending family reunification for subsidiary protection applicants.
  • Economic measures focus on corporate tax cuts, deferred relief for lower and middle incomes, and maintaining the solidarity surcharge for high earners.
  • A new Ministry for Digitalization and State Modernization is planned to address Germany’s technological and bureaucratic challenges.
  • The agreement requires approval through internal votes by CDU/CSU and SPD members, with the government formation and swearing-in anticipated in early May 2025.