In a significant shift in German politics, the Union (CDU/CSU) and the Social Democratic Party (SPD) have reached an agreement to replace the Bürgergeld, or citizen's income, with a new form of financial support. This decision comes amid ongoing coalition negotiations that have revealed deep divisions on various issues, particularly migration policy, economic strategies, and defense.
As of March 26, 2025, the SPD has conceded key elements of its Bürgergeld concept during these negotiations, indicating a willingness to abandon the name and implement a stricter support framework. The coalition aims to revert to previous methods of determining financial assistance, where any adjustments for inflation would take effect retroactively. This marks a departure from the recent increases in monthly payments, which rose by 53 euros in 2023 and 61 euros in 2024, with no increase planned for 2025.
According to reports from WELT, the parties have agreed on several contentious points regarding migration, including the reintroduction of measures that would allow police to turn back asylum seekers at Germany's borders. This policy will be executed "in coordination with our European neighbors," although the specifics of this coordination remain unclear. The list of safe countries of origin is expected to be expanded to include Algeria, India, Morocco, and Tunisia, making it more challenging for migrants from these nations to seek asylum in Germany.
The negotiations have highlighted a stark divide between the Union and SPD on migration policy. The CDU leader had previously announced a significant shift in this area, but the SPD is not fully on board with all proposed changes. The agreement includes the suspension of family reunification for two years for those with subsidiary protection status, and a cessation of new admission programs for endangered foreigners, effectively ending existing programs as far as possible.
In terms of deportation policies, the coalition has agreed to proceed with deportations to Afghanistan and Syria, starting with individuals deemed dangerous or who have committed serious crimes. Legal assistance before deportation will be abolished, and the Federal Police will be allowed to apply for detention pending deportation, a move aimed at preventing individuals from evading their deportation orders.
On defense and foreign policy, the coalition partners have expressed their commitment to strengthening Germany's military capabilities. The Bundeswehr is expected to become more operationally ready in the short term, as emphasized in a recent working paper. The Union is advocating for a significant increase in defense spending, targeting an increase towards 3.5 percent of GDP, while the SPD has left the specific percentage open for discussion. The two parties have agreed on the importance of maintaining strong ties with the United States, particularly in the context of the ongoing geopolitical tensions with Russia and China.
The negotiations also touch upon the future of Germany's energy policy, with both parties aiming to maintain their commitment to climate neutrality by 2045. However, they have decided to extend the coal phase-out target from 2030 to 2038, indicating a more gradual approach to transitioning away from fossil fuels. The SPD has pushed for maintaining the existing commitments to renewable energy and hydrogen use, while the Union has expressed interest in exploring the potential of nuclear energy and domestic gas production.
In transportation, the coalition has agreed to continue the Germany ticket for local transport beyond 2025, with plans for gradual price increases starting in 2027. A fundamental reform of the rail system is on the agenda, with a focus on improving infrastructure and financing through a special fund. However, the parties remain divided over the implementation of a speed limit on German autobahns, with the SPD advocating for a limit of 130 km/h, which the Union opposes.
Despite these agreements, significant disagreements remain, particularly in financial matters. The Union and SPD have struggled to find common ground on tax policies, with the SPD seeking to impose higher taxes on wealthier individuals, while the Union aims to reduce corporate taxes from around 30 percent to 25 percent. The SPD has signaled a willingness to consider tax cuts but only from 2029 and with limited reductions.
As the coalition negotiations progress, it is clear that the parties will need to address numerous contentious issues to finalize their agreement. The public is closely watching how these discussions unfold, particularly regarding the implications for social welfare programs, migration policies, and Germany's role on the global stage.
In summary, the coalition between the Union and SPD represents a pivotal moment in German politics, with potential long-lasting effects on the country's social fabric and international relations. As the parties continue to negotiate, the outcome will be crucial in shaping the future direction of Germany.
