Overview

• 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.