Germany’s Coalition Talks Enter Final Stretch with Major Policy Divides Unresolved

CDU/CSU and SPD aim to finalize an agreement by Easter, as disputes over taxes, migration, pensions, and climate policy persist.

A 19-member negotiation team, including party leaders Friedrich Merz, Markus Söder, Lars Klingbeil, and Saskia Esken, is addressing unresolved issues in coalition talks.
Key sticking points include corporate tax reform, with CDU/CSU advocating cuts by 2026 and SPD favoring minimal adjustments by 2029.
The parties remain divided on migration policies, particularly border asylum rejections and conducting asylum procedures outside the EU.
Disagreements on pensions persist, with SPD supporting the current 48% level while CDU/CSU propose increasing required contribution years to 47.
Climate policy remains contentious, with CDU/CSU opposing the EU’s 2035 combustion engine ban and SPD supporting a transition to zero-emission vehicles.