(de-news.net) – After their initial meeting on Friday, the Union parties and the SPD have adopted a cautious approach. In a joint statement, CDU, CSU, and SPD general secretaries described the discussions as open and constructive. Party leaders Friedrich Merz (CDU), Markus Söder (CSU) Lars Klingbeil and Saskia Esken (both SPD) participated, along with 15 other senior figures. Finance Minister Jörg Kukies (SPD) provided an overview of the budgetary situation, which will be revisited in future talks. The first meeting lasted five hours, with another scheduled for next week. A CDU/CSU-SPD coalition is the most realistic option post-election, excluding the AfD. Merz is determined to form a government by Easter, with negotiators under pressure to act swiftly.

SPD ministers are pushing for a major overhaul of state borrowing regulations. Bremen’s Mayor Andreas Bovenschulte (SPD) stressed the urgency of reforming the debt brake. SPD leaders like Manuela Schwesig and Anke Rehlinger (both SPD) are advocating for a comprehensive approach to address the country’s economic and security challenges. They argue that reforms are needed to secure necessary majorities in the new Bundestag. Both sides – the CDU/CSU on the one hand, and the SPD, on the other – are divided on relaxing the debt brake, with the Union parties rejecting changes.

Because of this, the exploratory talks aim to rebuild mutual trust, which was damaged during the election, particularly due to the Union’s ties with the AfD and its stance on migration policy. Both parties agree on increased investment but differ on the debt brake and defense spending, with the Union focused on a new Bundeswehr “special fund.” There is also consensus on high electricity prices, especially for industry. Merz proposes reducing benefits for those who refuse to cooperate with employment agencies, while the SPD favors maintaining citizen’s income with improved work incentives. The Union opposes a raise in the minimum wage, while the SPD pushes for €15 per hour by 2026. On tax policy, the Union wants lower corporate taxes and a flattened income tax rate, while the SPD aims to lower taxes for 95% of taxpayers and raise contributions from top earners.

The SPD also wants to guarantee a pension level of at least 48% of the average income, while the CDU/CSU prefers stabilizing pensions through economic growth. Merz supports supplying Ukraine with long-range Taurus missiles, which the SPD opposes due to escalation fears. Finally, the Union supports climate neutrality by 2045 but wants to maintain economic competitiveness, including revising EU regulations on combustion engines and considering nuclear energy. The SPD seeks climate relief funds. This has not been prioritized by the Union parties.