Union and SPD Unveil Comprehensive Plans on Migration and Social Policy

The newly formed coalition between the Union and the SPD has outlined a series of ambitious initiatives spanning immigration, social security, and economic reform. In a detailed document, the coalition partners have presented their strategies aimed at reshaping key areas of public policy.

Migration Policy Reform

One of the primary focuses of the coalition is a significant overhaul of immigration policy, particularly concerning asylum seekers. The coalition intends to incorporate explicit measures to limit immigration into new legislation, a promise made by Union leader Friedrich Merz during the election campaign. The proposal includes provisions for border rejections, a move that the SPD has previously labeled as potentially violating European law. However, the coalition plans to coordinate these actions with European neighbors, though challenges are anticipated, particularly with Austria's new government indicating a lack of willingness to accept rejected asylum seekers.

Regulatory Changes in Immigration

In addition to stricter border controls, the coalition aims to reduce overall immigration levels. The family reunification process for those granted subsidiary protection will be temporarily suspended, and voluntary resettlement programs, such as those for Afghan refugees, will be discontinued. The list of countries deemed safe for asylum seekers will be expanded, and measures for deportation will be intensified. The federal police will be granted the authority to detain individuals who are required to leave the country, and there will be an increased emphasis on holding home countries accountable for accepting their nationals.

Social Security and Employment Initiatives

In the realm of social policy, the coalition has decided to replace the existing citizen's income scheme with a new "Basic Security for Job Seekers." This initiative includes provisions for the complete withdrawal of benefits for individuals who are capable of work but repeatedly refuse reasonable job offers. The coalition has committed to combating social welfare abuse more aggressively, merging housing benefits and child allowances into a more streamlined support system.

Economic Measures and Taxation

On the economic front, the coalition has pledged to reduce bureaucratic hurdles by eliminating unnecessary reporting and documentation obligations, aiming for a 25% reduction in bureaucratic costs over the next four years. There are promises of increased digitization and enhanced free trade initiatives. A proposed tax reform aims to lower the electricity tax to the minimum allowed within the EU, which would reduce costs for both businesses and households. Plans to increase the commuter allowance and a permanent reduction of the VAT on restaurant meals to 7% are also part of this economic strategy.

Labor Market Enhancements

In a move that aligns with SPD interests, the coalition plans to raise the minimum wage to 15 euros by 2026, while emphasizing the importance of reinstating collective bargaining agreements. The regulations surrounding working hours will also be reformed, transitioning from a daily maximum to a weekly limit, with provisions for tax-free overtime. Although plans for social insurance reforms remain vague, the coalition promises to maintain stable pension levels and will expand benefits for mothers.

Infrastructure and Investment Plans

Despite the ambitious proposals, the coalition's plans for substantial investments in infrastructure and military funding have faced criticism from the Green Party. Three state ministers have expressed their disapproval, calling for a doubling of the funds allocated to states for infrastructure investments. The Green Party has cautioned against merely applying financial solutions to structural issues, emphasizing the need for a more sustainable approach.

Housing and Transport Policies

In terms of housing, the coalition plans to extend the rent cap for an additional two years and increase funding for social housing projects. Although details regarding transportation initiatives are sparse, discussions regarding the continuation of the Germany ticket and improvements to public transport are underway.

Future Legislative Considerations

Finally, a review of the recently amended electoral laws will be undertaken, with the potential for further reforms. The coalition has already reached agreements concerning significant exceptions to the debt limit for defense expenditures and plans for a special fund of 500 billion euros for infrastructure investments, pending approval from the Green Party and the Free Voters.