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Germany, first phase of Grand Coalition negotiations between CDU/CSU and SPD

Friedrich Merz proposes a new name for the alliance, but differences remain over finances and immigration

The first phase of negotiations on the formation of a future Grand Coalition government between the Union (CDU/CSU) and the SPD is drawing to a close in Germany. Today, the 16 working groups will present the results of their deliberations, which will be examined in the coming days. However, issues on which no agreement has yet been reached will be discussed in a core team.

The Union’s chancellor candidate Friedrich Merz made it clear that the alliance will not be a simple re-run of the ‘GroKo’ (Grosse Koalition), a term that established itself during Merkel’s third government and became word of the year in 2013. Merz said that one can no longer speak of a grand coalition, given the narrow majorities in parliament, and suggested alternative names such as ‘Red-Black Labour Coalition’ or ‘Coalition of Departure and Renewal’. However, he made it clear that for now the focus is only on content.

Significant differences have emerged on issues such as taxes, social policy and curbing illegal immigration. The CDU/CSU pushes for a reduction in corporate income tax and cuts in public spending, while the SPD proposes to increase revenue through a tax on financial transactions or wealth. On the immigration front, the CDU/CSU insists on border rejections, a proposal strongly rejected by the SPD.

The pressure on the negotiators is high, especially considering that a red-red-green or black-green coalition would not have the necessary numbers. Union and SPD are therefore forced to coexist politically, to avoid plunging the country into a crisis. However, relations between the two parties are more tense than in previous coalitions under Angela Merkel, with many members of the CDU/CSU base in conflict with the SPD and vice versa.

The climate remains complex, and while some differences seem destined to be resolved, others – such as the financial issue – will require intervention by the party leaders. The constituent session of the new Bundestag, which meets tomorrow, is a crucial step, also for the election of the new presidency.

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