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4w ago

Germany's Coalition Talks Stall Over Migration and Welfare Disputes

Incoming Chancellor Friedrich Merz faces mounting challenges in forming a government as SPD leverage grows and far-right AfD gains momentum.

German Chancellor-in-waiting Friedrich Merz speaks during an extraordinary session of the outgoing lower house of parliament, the Bundestag, for a vote to adopt the draft law brought by the SPD and CDU/CSU parliamentary groups to reform constitutional debt rules and set up a 500 billion euro infrastructure fund, in Berlin, Germany March 18, 2025. REUTERS/Annegret Hilse/File Photo
German Chancellor-in-waiting Friedrich Merz speaks to the media after he reached an agreement with the Greens on a massive increase in state borrowing just days ahead of a parliamentary vote next week, in Berlin, Germany, March 14, 2025. REUTERS/Axel Schmidt/File Photo

Overview

  • Friedrich Merz's CDU/CSU coalition negotiations with the SPD face significant hurdles, particularly over migration policy and welfare reforms.
  • Merz's landmark borrowing plan, a major policy reversal for the CDU/CSU, has weakened his negotiating position by securing the SPD's primary demand.
  • The SPD opposes Merz's proposed stricter border controls, arguing they violate EU law, and has labeled some conservative policies as 'deal-breakers.'
  • The far-right Alternative for Germany (AfD) continues to gain political ground, with recent polls showing it narrowing the gap with the CDU/CSU.
  • Merz has emphasized the urgency of forming a coalition to address geopolitical challenges, but complex negotiations involving 256 stakeholders risk delaying government formation.