Union and SPD Struggle to Resolve Key Issues in Coalition Talks

As the Easter deadline approaches, disputes over taxes, migration, and social spending threaten to delay Germany's new government formation.

Union and SPD face significant disagreements on corporate tax cuts, a 15-euro minimum wage, and migration policies, complicating coalition negotiations.
The 500-billion-euro special fund for infrastructure and climate investments has been approved, but its allocation remains contentious.
SPD prioritizes education investments and proposes subsidies for electric vehicle purchases, particularly for low-income households.
Economic stakeholders criticize the coalition's reliance on debt financing without structural reforms to address Germany's stagnating growth.
The rise of the AfD, which doubled its vote share in the election, adds pressure on the coalition to address voter concerns on economic stability and migration.