Reactions to Coalition Talks: Mixed Responses from Associations on Union and SPD Plans

Sun 9th Mar, 2025

The recent coalition talks between the Union and the SPD have outlined a framework for a potential black-red government, but not all representatives of various associations are satisfied with the outcomes. Their feedback reveals several areas of concern.

Rainer Dulger, President of the Employers' Association, expressed disappointment over the lack of substantial reforms in social insurance systems, stating that the discussions left significant gaps. He emphasized the need for ambitious measures that could contribute to stabilizing or even reducing social insurance contributions while removing disincentives to improve employment rates. Regarding the proposed minimum wage of EUR15 by 2026, he cautioned against any interference from external parties in the wage-setting process.

Ingbert Liebing, the CEO of the Association of Municipal Entrepreneurs, acknowledged that the coalition partners have made important points in the discussion paper. He highlighted their call for reliability, realism, and investment, which he finds reflected in several aspects of the proposal. Liebing welcomed the planned investments in infrastructure and the proposed reduction of the electricity tax.

Jörg Dittrich, President of the Central Association of German Crafts, noted that although there is goodwill in the content, the goal of achieving significantly improved competitiveness remains unfulfilled. He pointed out the absence of a comprehensive overhaul of social security systems, which would alleviate burdens on both businesses and employees.

Joachim Rukwied, President of the Farmers' Association, praised the proposal to reintroduce the agricultural diesel tax refund. However, he criticized the planned increase of the minimum wage to EUR15, arguing that such an increase would jeopardize the competitiveness of German agriculture, particularly affecting the fruit, vegetable, and wine sectors. He called for specific exemptions for agriculture.

Frank Werneke, Chairman of Verdi, commented positively on the agreements regarding the preservation of pension levels and the establishment of a federal wage compliance law, as well as the indication of a path toward a EUR15 minimum wage. However, he noted that the statements concerning public transportation and the Germany ticket lack clarity and stressed the necessity for reliable funding commitments in these areas, along with health and nursing sectors.

André Berghegger, CEO of the Association of Cities and Municipalities, indicated that they expect the federal government to allocate EUR1 billion over the next decade for bunkers and civil protection facilities, as well as for bolstering the Technical Relief Organization and various aid organizations. He also welcomed the coalition's plans concerning migration.

Jutta Gurkmann, head of consumer policy at the Consumer Center, highlighted the positive aspect of the proposal to reduce energy costs for all. She urged that the coalition negotiations should address pressing everyday concerns of citizens, including high food prices and ongoing issues with public transportation. The long-term security and funding of the Germany ticket must also be ensured.


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