A breakthrough in Germany’s coalition talks brings new hope to a government formation, but challenges remain on issues like migration and taxation.
Germany’s three main centrist parties presented the results of their first round of coalition talks on Monday following the federal election in February.
The conservative bloc made up of the Christian Democratic Union (CDU) and Christian Social Union (CSU), has been in talks to form a coalition government with the center-left Social Democrats (SPD).
Sticking Points: Migration and Taxation
Despite progress, sticking points on issues such as taxes and migration remain.
The conservative bloc’s main campaign promise was to limit migration, while the SPD is pushing for stricter asylum policies.
Migration policy refers to the laws and regulations governing the movement of people across international borders.
It involves balancing economic, social, and security considerations.
According to the United Nations, there were over 272 million international migrants in 2019.
The European Union's common immigration policy aims to harmonize member states' approaches.
In contrast, the United States has a more decentralized system, with each state responsible for its own policies.
German coalition: The Issues Where Merz’s CDU and SPD Differ
The parties were able to come to an agreement to pass a historic debt reform and funding package in pre-negotiation talks.
However, there appear to be considerable sticking points between the conservatives and the SPD, especially when it comes to migration.
Outlook for German Coalition Negotiations
CDU leader Friedrich Merz has said he wants to have negotiation talks concluded by Easter, which falls on April 20 this year.
The main reason for this push is the uncertainty caused by the new Trump administration in the US and concerns over how that may affect Germany and its already recession-hit economy.
Friedrich Merz is a German politician and lawyer.
Born on November 11, 1955, in Würzburg, West Germany, he has been a member of the Christian Democratic Union (CDU) since 1979.
Merz served as the leader of the CDU/CSU parliamentary group from 2000 to 2004 and again from 2018 to 2021.
He has also held various ministerial positions, including Minister for Special Tasks in the Federal Ministry of Economics and Technology.
Merz is under pressure to provide something to his conservative base, especially since he has come under criticism for helping reform the ‘debt brake‘ and pave the way for a massive increase in government spending.
He has also refused to form a coalition with the far-right Alternative for Germany (AfD), who have campaigned heavily against migration.
Progress Amidst Friction
Despite the challenges, party leaders say progress is being made.
CDU General Secretary Carsten Linnemann said the next few weeks would be key, but echoed the CDU/CSU mantra that simply continuing old policies was not an option.
SPD leader Lars Klingbeil emphasized that the focus should be on finding common ground rather than trying to outdo each other. ‘This isn’t about who comes out on top, who collects which trophies,’ he said.
‘Rather, this is about the responsibility we share for our country.’
Next Steps
The parties will now seek to address points upon which consensus remained out of reach.
A new timeframe for round two of talks will be announced by midweek.
In all, 16 working groups participated in the first phase of discussions.
The issues most in need of discussion are taxes, welfare policy, and illegal migration.
