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Union and SPD Launch Coalition Talks Amid Financial and Political Tensions

The proposed 500-billion-euro debt-financed investment package faces resistance from the Greens, with key negotiations underway to secure a two-thirds parliamentary majority.

  • Union and SPD have started formal coalition negotiations, aiming to finalize a government agreement by March 24, based on an 11-page preliminary paper.
  • The proposed package includes a 500-billion-euro infrastructure fund and a reform of Germany's constitutional debt brake, requiring a two-thirds majority in the Bundestag.
  • The Greens' support remains uncertain, with demands for clearer commitments to additional climate investments and skepticism over the allocation of funds.
  • Friedrich Merz, poised to become Chancellor, faces criticism for perceived contradictions in his stance on fiscal policy, which has drawn fire from opposition parties and former allies like the FDP.
  • The Bundestag's rare post-election session underscores the urgency of passing the financial measures before the new parliament convenes on March 25.
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