The CDU, CSU and SPD have taken a new step towards forming the future government in Germany. The exploratory talks have been concluded, and as a result, an 11-page document has appeared, which sets out some of the most important measures and changes that can be expected. Here are the most important of them, summarized by the ARD:
Economy
- Electricity tax: In order to ease the burden on companies and private households, the electricity tax will be reduced to the lowest permissible level in the EU. The goal is to achieve a reduction in electricity prices of at least five cents per kilowatt hour. A reduction in transmission network fees, which are part of the price of electricity, is also planned.
- Tax reform: According to the research document, the “broad middle class“ should be relieved. A reform of the general income tax (GIT) is planned.
- Electric cars: In order to stimulate the weak demand for electric cars, the CDU/CSU and the SPD are planning “purchase incentives“. Such existed before, but were canceled at the end of 2023 due to budget constraints, after which demand fell significantly.
- Gastronomy: VAT in the catering sector will be permanently reduced to 7%. During the coronavirus pandemic, VAT in the restaurant industry was reduced from 19 to 7 percent, but only temporarily.
- Agriculture: The subsidy for agricultural diesel for farmers that was canceled by the previous government will be restored.
Labor and Social Affairs
According to the research document, the minimum wage in Germany should increase to 15 euros per hour in 2026.
- Pensions: Anyone who continues to work voluntarily after retirement will be entitled to an additional income of up to 2,000 euros per month tax-free.
- Basic income for the unemployed: A review of the basic income system is planned, said CDU leader Friedrich Merz. “People who are able to work and have repeatedly refused acceptable work will have their benefits completely withdrawn.“
Migration
- Return from the borders: In future, people who have applied for asylum will also be returned from Germany's borders - however, it is stipulated that this will only happen by agreement with neighboring countries. Such a return is only possible where there are permanent border controls.
- Reunification of separated families: The reunification of families of people who are entitled to subsidiary protection will be suspended for a limited period of time, which has not been specified. A so-called repatriation offensive is also planned: the Federal Police in Germany will be authorized to detain people who are to be deported. They will no longer have the previously mandatory legal protection. The list of safe countries of origin will also be expanded.
Funding
- Special financial fund: The CDU and SPD want to create a special fund for infrastructure investments with a volume of 500 billion euros and a period of ten years. The money would be earmarked for civil defense, for the renovation of outdated transport infrastructure, for investments in hospitals, schools, scientific research and digitalization.