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What we know so far about the proposed new coalition deal

The German Press Agency (DPA) has seen inside the 28-page paper that is the result of five days of talks between the Christian Union and the Social Democrats on forming a new government. Here are the key points.

Published: 12 January 2018 10:23 CET

What we know so far about the proposed new coalition deal

Photo: DPA

Refugees

The parties have agreed that there should be an upper limit on refugee arrivals that lies between 180,000 and 220,000 per year.

They have also reached agreement on family reunions for refugees with “subsidiary protection”. These people will continue to have no right to bring their families to Germany until a new law is created – this new law will limit the family members arriving in Germany to 1,000 per month.

READ ALSO: Christian Union and Social Democrats reach breakthrough in coalition talks

East Germany

The parties have agreed to lower the “solidarity tax” – a tax on all German workers which goes exclusively to east Germany – should be lowered in stages by €10 billion by the year 2021.

Social welfare

The parties have agreed in principal to several improvements to the social welfare system. The negotiating paper states that the coalition would “stabilize the level of pensions”. The paper states that the pension level should be legally set at 48 percent of income until the year 2025.

At the same time the paper commits the coalition to creating free child daycare centres, as well as increasing overall Kindergarten financing and increasing the level of parental allowance.

Europe

German Chancellor Angela Merkel's conservatives and the centre-left Social Democrats vowed in a coalition blueprint Friday that, if they form a government, they would work to strengthen the eurozone.

“We want to… in close partnership with France, sustainably strengthen and reform the eurozone so that the euro can better withstand global crises,” Germany's biggest parties said in a draft policy agreement.

Taxes

The SPD had fought for an increase in the top level of tax, but the paper does not make mention of this. According to members of Merkel’s negotiating team, the paper rules out any tax increases over the next four years.

ANALYSIS: What's at stake in Germany's eastern state elections?

German politics’ “eastern September” is set to finally end Sunday – with more ruminations and reflections likely to come about the recent fortunes of the far-right AfD at the ballot box.

If current polls are anything to go by, the AfD could come in first in the eastern state encircling Berlin – which counts Potsdam as its capital.

After overtaking the governing Social Democrats (SPD) in a recent shock poll, the party is currently at around 28 percent, compared to the SPD on 25 percent. The centre-right Christian Democrats come in at 16 percent in the latest poll and the left-populist Sarah Wagenknecht Alliance (BSW) – named after its founder – charts in at 14 percent.

The remaining parties come in much lower – with the Greens, Left and liberal Free Democrats all facing possible ejection from the state parliament.

Another victory for the AfD – or even a strong showing should the SPD still manage a narrow surprise win – will certainly boost the far-right’s confidence, after it came in first in Thuringia and second in Saxony earlier this month, following state elections that saw all three of Germany’s federally governing parties take massive losses.

Thuringia and Saxony results will likely hang over Brandenburg on Sunday – with Germany’s governing parties, many everyday Germans, and foreigners all watching with some trepidation. Here’s what to watch out for following the Brandenburg result.

READ ALSO: ‘Political earthquake’ – What the far-right AfD state election win means for Germany

A newly confident AfD insists it must be part of government

The AfD has repeatedly argued that it must be considered as a possible coalition partner to join German governments – whether at the federal, state, or local level.

“There are no politics without the AfD,” its co-leader Tino Chrupalla said following the Thuringia results. However, all other parties have explicitly refused to work with the AfD to form a governing coalition – meaning that as high as its results this month have been, they fall well short of the absolute majority that would be required to govern alone.

READ ALSO: ‘We need change’: Germany’s far-right eyes power after state election win

However, its getting more difficult to form coalitions to keep the AfD out, with the centre-right CDU in Thuringia even open to governing with the leftwing populist BSW after mainstream parties like the Greens and FDP were thrown out of state parliament entirely.

University of Mainz political scientist Kai Arzheimer, who specialises in the German far-right, says whether the far-right ever get into a German government or not depends mostly on whether – and how – the CDU is willing to work with the AfD.

Thuringia election results on a screen

People watch the first exit polls results for Thuringia’s state elections come in at the State Parliament in Erfurt on September 1st, 2024. Photo by Joerg CARSTENSEN / AFP

“For the time being, it should be able to form coalitions against the AfD, even if they are rather awkward,” says Arzheimer, who adds that even the different regional chapters of the CDU may have different opinions about working with the AfD.

“Within the eastern state parties of both the CDU and the FDP, there seems to be some appetite for coming to an arrangement with the AfD. While a formal coalition would probably split either party, we have already seen some tentative moves towards an informal cooperation.”

Ultimately, the Brandmauer or “firewall” concept in German politics – in which all other parties refuse to work with the AfD – may end up coming under increasing stress on the back of eastern state election results, where governing with the far-right no longer becomes unthinkable.

READ ALSO: EXPLAINED: Could the far-right AfD ever take power in Germany?

What the mainstream parties take from eastern election results

It’s probably no coincidence that Germany’s ruling government decided to re-institute border controls at its land borders with other EU states shortly after the AfD topped the Thuringia state poll, according to Arzheimer, who says the elections are just the latest in a number of things at work when if comes to Germany’s migration debate.

“The border controls, the plans for the stricter enforcement of repatriation orders, and most of all the government’s harsher rhetoric are as much a reaction to Saxony and Thuringia as they are an attempt to control the fallout from the Solingen knife attack and a response to the whole ‘debate’ on immigration,” he says.

“Many experts seem to agree that they are neither practical nor that useful, and introducing them more or less overnight smacks of a degree of panic.”

READ ALSO: Should foreign residents in Germany be concerned about far-right AfD win?

Polls conducted following the election found that migration and internal security issues were big drivers of the AfD vote – despite these being issues for the national, rather than regional, government.

Of the AfD voters in Thuringia, more than 70 percent said either migration or crime and internal security played the largest role in influencing their vote. Slightly less than ten percent said social security. Despite the AfD’s pro-Russian views, only three percent of AfD voters in Thuringia said Germany’s support of Ukraine decisively influenced their votes.

Besides the mainstream parties like the SPD reacting with spur-of-the-moment migration policies, the Brandenburg result may end up putting pressure on Chancellor Olaf Scholz from within his own SPD.

Brandenburg SPD’s Dietmar Woidke may still be able to hold onto the premiership, but he has said he will resign if he doesn’t beat the AfD outright. Should he lose, calls may grow louder within the SPD for Scholz to resign himself – or at least declare that he won’t stand as a chancellor candidate again.

READ ALSO: How an explosive row over immigration has divided Germany

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