- Merz's conservative CDU/CSU alliance struck a deal to forge a new government with the centre-left SPD
- They unveiled a 144-page coalition agreement that promises tax cuts, tougher stance on migration
Vice Chancellor and Finance Minister: Social Democrat co-leader Lars Klingbeil is widely expected to take the powerful posts of finance minister and vice-chancellor.
Foreign Minister: Some expect the job of Germany's top diplomat to go to Johann Wadephul, the 62-year-old deputy chair of the CDU/CSU parliamentary group. He is known for pushing to allow Ukraine to strike targets inside Russia with Western-supplied weapons.
Interior Minister: The brief is to be held by the Bavarian Christian Social Union (CSU) and the foremost politician from the Bavarian conservative in Berlin is state group leader Alexander Dobrindt.
Defense Minister: The incumbent in the post, the SPD's Boris Pistorius, is expected to stay in the job, having won plaudits as defense minister both from other politicians and the German public.
Pagrindiniai susitarimo punktai:
- Trade: Reaching a medium-term free trade deal with the United States. In the shorter term, the coalition parties aim to avoid trade conflicts with the US and focus on reducing import tariffs each way. Swift as possible EU agreements with Latin America's Mercosur bloc and Mexico.
- Energy and climate: Electricity prices to be lowered by at least 5 cents through a reduction in electricity tax and grid fees. An increase in gas power plant capacity. A legislative package to allow carbon capture and storage. The abolition of a controversial heating law to phase out fossil fuel heating. A binding EU climate target to cut net emissions 90% by 2040.
- Borrowing and taxation: An expert commission on modernizing Germany's debt brake, which restricts public borrowing. A corporate tax rate reduction from 2028. Significant lowering of sales tax on restaurant food.
- Labor: Tax-free overtime pay tax-free and tax benefits for those working beyond retirement age. A reform of unemployment benefits and stricter sanctions for those refusing to work. A minimum wage target of 15 euros per hour from 2026.
- Defense: Ramping up defense spending "significantly" to meet NATO targets for troops and weapons. A new form of military service, for now voluntary. Readiness of forces to be stepped up. Continued support of Ukraine. A law to speed up defense procurement and simplify procedures. Standardization of military equipment in cooperation with European partners.
- Migration: Suspension of family reunification for people with a so-called subsidiary protection status. An end to all federal admissions programs for refugees. Asylum seekers will be rejected at land borders. Germany to start deporting people to Syria and Afghanistan, starting with criminals and potentially dangerous persons.
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