Overview
- Union and SPD have concluded a 45-day negotiation process, reaching an agreement on a coalition contract this morning.
- The agreement allocates key ministries, with the SPD securing Finance, Defence, and Justice, while the Union claims Interior, Foreign, and the Chancellor's office.
- The coalition deal includes tax reforms, maintaining the solidarity surcharge for top earners, and a commitment to preserve the 48% pension level until 2031.
- External pressures, such as U.S. tariffs and economic challenges, accelerated the talks, highlighting the urgency for a stable government.
- Internal dissent within the CDU persists, with some members expressing dissatisfaction over compromises and lack of party inclusion in decision-making.