Overview

• Leaders from the CDU/CSU and SPD express optimism about finalizing a coalition agreement soon, though key disputes over fiscal policy and tax reforms remain unresolved.
• US tariffs, announced by Donald Trump, have intensified economic pressures on the negotiations, raising concerns about Germany's export-driven economy.
• Demands for greater representation of East Germany in the cabinet have added complexity, with calls for proportional inclusion of the region's population.
• The far-right AfD's rise in polls, narrowing the gap with the CDU/CSU, has increased pressure on traditional parties to form a stable government.
• Both parties aim to implement tax cuts for businesses and citizens while addressing budgetary constraints and reducing bureaucracy.