Germany’s conservative CDU/CSU political union and the centre-left Social Democrats (SPD) have signed off on a coalition deal in Berlin which paves the way for a new government to be sworn in on Tuesday.
CDU party leader Friedrich Merz, set to be sworn in as Germany’s new chancellor, pledged that the three parties would “vigorously get to work.”
“We know that it is our almost historical obligation to lead this coalition to success. We are determined to do this together,” he said ahead of the signing.
Responsibility for Germany
The motto of the 144-page coalition agreement is “Responsibility for Germany.”
“Germany can successfully master every task on its own and in close co-operation with our partners and friends in the world,” the document says.
The agreement renews “the promise of the social market economy – opportunities and prosperity for all” and says the new government will strengthen Germany’s defence capabilities to safeguard freedom and peace.
The intelligence services and the police are to be given extended powers and in the case of certain criminal offences, security services will be allowed to use artificial intelligence to analyse publicly accessible data.
The coalition parties have also announced a “new, more consistent approach to migration policy.”
The plan is to suspend voluntary admission programmes and family reunification. In addition, asylum seekers are to be turned away at the border “in coordination with European partners.”
A new law is planned for the federal police which will make it possible to apply for detention pending deportation for foreigners who are obliged to leave the country.
The partial legalisation of cannabis initiated by the previous government is to be “openly reviewed” in the autumn.
Tax relief
In the preamble to the agreement, parties reaffirm their commitment to the social market economy with the aim of creating “opportunities and prosperity for all.”
Measures are planned to reduce energy costs, speeding up authorisation processes and easing some of the burdens on company founders.
In the middle of the legislative period, the coalition is planning to ease the burden on small and medium incomes by reducing income tax.
In addition, tax incentives are to be created for longer working hours. A reintroduction of the reduced VAT rate of 7% for the catering sector is planned from 2026.
The document says the coalition is committed to the Paris Climate Agreement and the goal of making Germany climate neutral by 2045.
The coalition is also planning to abolish the so-called Heating Act, which was introduced under the previous government, and replace it with a new Building Energy Act.
This is to be more open to technology, more flexible and more user-friendly, with a focus on effectively reducing CO2 emissions.
The expansion of wind and solar power initiated under the previous government will be continued.
Cabinet picks
Johan Wadephul of the CDU will replace Annalena Baerbock as Germany’s Foreign Minister with Boris Pistoris remaining in office as defence minister.
The SPD’s Lars Klingbeil will take on the dual roles of vice chancellor and finance minister.
Aleander Dobrindt from the CSU will head the interior ministry with the SPD’s Stefanie Hubig named as justice minister.
CSU leader Markus Söder called the coalition a “community of responsibility” and pledged it would be “a strong team.”
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