Coalition ends talks on relief measures and reforms

Top representatives of Germany's black-red coalition from CDU, CSU and SPD concluded their two-day talks on energy prices and social-tax reforms late Sunday night at Villa Borsig near Berlin. No results were disclosed immediately. It remains unclear if announcements will follow on Monday.

The negotiations took place at Villa Borsig, the Foreign Office's guesthouse on the Tegeler See in northern Berlin. On Saturday, party leaders met: Chancellor Friedrich Merz (CDU), Minister President Markus Söder (CSU), Finance Minister Lars Klingbeil and Labour Minister Bärbel Bas (SPD). Other participants included Chancellery Minister Thorsten Frei (CDU), Interior Minister Alexander Dobrindt (CSU), Finance State Secretary Björn Böning (SPD) and Economy Minister Katherina Reiche (CDU).

On Sunday, Merz and Vice-Chancellor Klingbeil were seen on the terrace of the cordoned-off estate. CSU leader Söder posted a photo of himself by the lake on platform X, noting: «Heute wichtiger Tag in Berlin…» ("Today important day in Berlin…"). Health Minister Nina Warken (CDU) also attended.

The talks were prompted by soaring energy prices due to the Middle East war and intense disputes during the Easter weeks. The coalition aims for the largest reform package in over 20 years, including adjustments to health and pension systems and closing a 60 billion euro structural budget deficit. Disagreements persist: Reiche advocates orderly policy without market interventions, while Klingbeil sees market failure and calls for interventions.

Under strict secrecy, no results were released. A temporary resolution to the coalition dispute appears possible.

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The leaders of CDU/CSU and SPD held a three-and-a-half-hour coalition committee meeting on budget, climate protection, and other topics, without making concrete decisions. The session at the Chancellery took place confidentially, skipping the usual press conference. Progress was reported on the climate protection program, while issues like fuel prices had already been addressed by the cabinet.

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Federal Economics Minister Katherina Reiche (CDU) has rejected demands for an excess profits tax to address high fuel prices. She called measures like fuel vouchers misleading and proposed raising the commuter allowance instead. The price surges stem from the Iran war.

 

 

 

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