In the context of the recent federal election, intense negotiations are underway between the CDU and SPD, as reported by the Berliner Zeitung on Monday. Two major points of contention are hindering the formation of a new government.
One of the key issues is the handling of asylum seekers at the borders. The CDU is pushing for a more stringent approach, advocating for the direct rejection of asylum seekers who have already registered in another EU country. The CSU’s leader, Söder, has fueled the debate, arguing that this is necessary to alleviate the German asylum system and curb illegal migration. The SPD, on the other hand, is opposed to a blanket rejection and is advocating for “European solutions.” They only support the deportation of asylum seekers if the neighboring countries agree, which is unlikely.
Another point of contention is the proposed reduction of corporate tax rates for struggling businesses. While the CDU and CSU are pushing for a reduction, the SPD is advocating for a more gradual approach, proposing a corporate tax reform only in 2029. The CDU has described the negotiations in the finance working group as “slow.”
The SPD is not showing any signs of compromise, with some of its members even leaving the negotiations in a state of frustration. The party is also pushing for a “wealth tax” which has been rejected.
The deadline for the coalition talks is drawing near, with some parties expressing doubts about the success of the negotiations. Saarland’s Minister President, Anke Rehlinger, is confident that the remaining contentious points will not be resolved by the end of the month. Friedrich Merz, the CDU’s leader, has hinted that he may step down if the coalition talks fail, but has also ruled out the possibility of a minority government led by the CDU. However, some speculate that a minority government comprising the SPD, the Left and the Greens, led by a SPD leader such as Lars Klingbeil or Boris Pistorius, is a possibility, but this remains to be seen.