As discussions commence between the Union and the SPD regarding a potential coalition, several contentious issues have emerged that could complicate negotiations. Following the recent elections, Union Chancellor candidate Friedrich Merz sees the SPD as his sole option for partnership, especially after dismissing the possibility of collaborating with the AfD. However, within the SPD, there is no assumption that a coalition with Merz is a foregone conclusion, leading to friction between the two parties.

Initial talks began on Friday, with party leaders aiming to resolve underlying tensions that arose during the campaign. Discontent on both sides surfaced, particularly regarding migration policies, where the SPD criticized the Union for its approach to the AfD, which they viewed as a breach of political norms. Merz has also made disparaging remarks about leftist ideologies.

A significant focus of the coalition discussions lies in several critical areas where consensus appears challenging. Both parties must navigate economic uncertainties and global political dynamics while seeking common ground on these issues:

Migration Policy

The CDU/CSU coalition is advocating for stricter migration policies aimed at curtailing irregular migration. This includes proposals for comprehensive rejections of refugees at national borders, even for asylum seekers. The SPD, however, argues that such measures violate both the German Constitution and European Union law. Additionally, the Union seeks to suspend family reunifications for those under subsidiary protection, which the SPD opposes.

Funding for NGOs

A recent inquiry from the Union regarding the financing of non-governmental organizations (NGOs) has caused friction, with SPD leader Lars Klingbeil labeling it as an unfair maneuver. This inquiry relates to groups that have been involved in protests against right-wing extremism, which the Union has supported through its migration policy proposals.

Citizen's Income

On the issue of citizen's income, CDU leader Friedrich Merz proposes total withdrawal of benefits for individuals who refuse to cooperate with job agencies. He suggests replacing the term 'citizen's income' with 'new basic security.' Conversely, the SPD insists on maintaining the current citizen's income structure while focusing on enhancing job incentives and monitoring compliance with job offers.

Minimum Wage

Disagreement also exists regarding the minimum wage, currently set at EUR12.82 per hour. The Union opposes raising this figure through political means, favoring adjustments made by an independent commission. The SPD, on the other hand, is pushing for an increase to EUR15 by 2026, based on previous political decisions made during their tenure in the coalition.

Taxation

In terms of taxation, the CDU/CSU aims to reduce corporate taxes to a maximum of 25%, while the SPD seeks to support businesses through investment deductions. The Union plans to flatten income tax rates and raise the threshold for the top tax bracket, advocating for the complete abolition of the solidarity surcharge. The SPD's approach involves lowering income tax for the majority of taxpayers while proposing higher contributions from top earners.

Pension Levels

Discussions on pensions reveal further differences. The SPD advocates for a guaranteed pension level of at least 48% of the average income, whereas the CDU/CSU proposes maintaining pension levels and contributions through economic growth.

Fiscal Policy

Debates regarding the debt brake and potential special funding for the military are also on the agenda, necessitating constitutional amendments that would require a two-thirds majority, complicating negotiations further.

Military Support to Ukraine

Merz has expressed readiness to provide Ukraine with long-range Taurus missiles, a stance that the SPD firmly opposes due to concerns over escalating tensions with Russia. The relevance of this issue in coalition talks remains uncertain due to ongoing geopolitical developments.

Climate Policy

The Union intends to maintain the climate neutrality goal by 2045 while arguing for the preservation of economic competitiveness. They oppose EU mandates aimed at phasing out combustion engines and consider reviving nuclear energy. The SPD, however, seeks to implement climate measures that would alleviate the financial burden on citizens.

Public Transportation

The SPD plans to offer the Deutschlandticket at its current price permanently, with discounts for specific demographics. Merz supports this concept but emphasizes the need for secure funding, which is only guaranteed for the current year.

Electoral Reform

Furthermore, the Union aims to amend the recently reformed electoral law, as they believe it has led to inequities in parliamentary representation.