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LFHCK a.k.a LiFeHaCK

German Coalition Talks Escalate: Intense Negotiations Between CDU and SPD Advance

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The heads of the center-right Christian Democratic Union (CDU), the Christian Social Union (CSU)—which is exclusively active in Germany’s southeastern Bavarian region—and the center-left Social Democrats (SPD) addressed the media as negotiations for forming a new German administration advanced to another phase.

The CDU leader and probable next Chancellor of Germany, Friedrich Merz, stated that although some obstacles remain, he is optimistic that the parties involved will succeed in reaching an accord.

The Bavarian Minister President Markus Söder along with the SPD leaders Lars Klingbeil and Saskia Esken participated alongside Merz in expressing their positive outlook regarding the coalition talks.

The upcoming round of discussions is anticipated to mainly focus on determining how to fund electoral pledges via taxation and tax reductions.

The CDU aims to decrease corporate taxes starting next year, whereas the SPD plans to implement this reduction only from 2029. Additionally, the SPD supports raising income tax rates for those with higher earnings, an idea that the CDU wishes to steer clear of.

The CDU and SPD have differing views on several policy issues such as returning asylum seekers at the border, funding pensions by increasing the retirement age, reinstating mandatory military service, and lifting the EU’s prohibition on internal combustion engine vehicles by 2035.

Although Merz intends to establish the new government before Easter, which is scheduled for April 20 this year, early May might be a more feasible timeframe.

SPD members will also cast their votes on the proposed coalition deal agreed upon with the CDU. This voting process is anticipated to last around 10 days and must conclude before Easter.

There is urgency for the parties to establish a government and choose a chancellor promptly, given that Germany is confronting economic and security issues.

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