dpa correspondents
dpa Germany’s coalition migration finances
(DPA) — Germany’s presumptive next chancellor, Friedrich Merz, said coalition negotiations between his conservative bloc and the Social Democrats (SPD) were focused on resolving major points of contention but that progress was being made.
“We have to paint a common picture of how we imagine the Federal Republic of Germany in the next 10 years, what this country should look like,” Merz said at the SPD’s headquarters in Berlin, where talks took place on Friday.
Fiscal policy and migration are dominating the negotiations, the parties said.
Friday’s discussions involved lead negotiators from Merz’s Christian Democratic Union (CDU), its Bavarian sister party, the Christian Social Union (CSU), and the SPD of acting Chancellor Olaf Scholz.
These top-level talks, which will continue for days, are based on the results of 16 working groups tried to hash out the details of a government programme, sometimes without success.
The round table began with a discussion lasting about five and a half hours, followed by dinner.
How to fund election promises remains a major question.
The CDU/CSU and SPD are likely furthest apart on fiscal issues, including whether top earners should pay higher taxes, how inheritances should be taxed, and when a planned corporate tax reform should take effect.
The lower-level working group on finance, taxation and the budget failed to reach a consensus, leaving senior party leaders to settle the disputes.
Germany’s coalition migration finances
“Of course, the finances are being looked at,” said SPD co-leader Lars Klingbeil. “It is completely clear to us that we can only present a coalition agreement that is characterized by solid finances and fully funded projects that we consider important.”
While the SPD supports certain tax increases, the CSU remains firmly opposed. “We need tax cuts,” said Markus Söder, the influential premier of Bavaria and the CSU leader, on Friday.
Curbing irregular migration is another major sticking point.
Both the conservatives and the SPD have said they want asylum seekers turned back at the German border but have not agreed on the specifics, including how involved neighbouring countries should be in the policy.
Additionally, the CDU/CSU wants to enable asylum procedures outside the EU and tighten citizenship laws, but the SPD has pushed back on aspects of those plans.
With the German economy struggling to emerge from negative growth and major companies announcing lay-offs almost weekly, pressure is mounting to install a new chancellor and government as soon as possible.
The closed-door talks will continue on Saturday. The parties aim to reach a coalition deal by Easter in April.
In the February 23 election, the CDU/CSU alliance secured 28.5% of the vote, while the third-placed SPD managed just 16.4%.
The far-right Alternative for Germany (AfD) doubled its vote share to 20.8%, but mainstream parties refuse to cooperate with the AfD.
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