Merz and the coalition: decisions for Germany during the start!

Merz and the coalition: decisions for Germany during the start!

Deutschland - The first coalition committee of Union and SPD led by Federal Chancellor Friedrich Merz took place on May 28, 2025. As a new participant, Merz takes part in such a meeting for the first time and cannot make any comparisons to previous meetings. Together with the party leaders of the SPD, Saskia Esken and Lars Klingbeil, as well as Markus Söder from the CSU, the seat was described as constructive. However, Söder did not remove from the statement that "everything was even better at the beginning".

A central concern of the meeting was the economic difficulties with which Germany is faced. In this context, an “immediate program” to support the economy was decided, which includes several dozen priority points, albeit without concrete data. Merz announced quick measures to overcome the current weakness of growth because Germany is in the third year of a recession. Experts from the economic research institutes have reduced the growth forecast for 2023 from 0.8% to 0.1%. The program also stipulates that companies can write down 30% of their expenses for purchases between 2025 and 2027.

economy and infrastructure in focus

In a further step, the establishment of a special fund of 500 billion euros for infrastructure and climate protection was decided. According to Ostsee-Zeitung , the reform of corporate assets is also being considered. Corporation tax rate is to be reduced from 15% to 10% in the future, although this will only be implemented over five years from 2028. Tax deductible special depreciation and simplifications in public procurement law as well as facilitating the approval process for renewable energies are also in planning.

For many of the measures provided, the approval of the federal states is necessary, which warned additional resistance, especially against the commuter flat rate and the reduction in VAT for the catering trade. These measures should come into force on January 1, 2026 and include an increase in the commuter flat rate and a reintroduction of the agricultural diesel Return remuneration. Merz emphasized that country representatives also negotiated the coalition agreement and will benefit from the special fund.

political position references and reactions

In the meeting, Interior Minister Alexander Dobrindt brought into account the suspension of the family reunification for refugees with limited protection status and to abolish turbo incoming. These plans received negative reactions from the ranks of the Greens, which expressed concerns that the suspension of family reunification could lead to irregular immigration and integration problems. Esken made it clear that this was their first and last session in this composition.