Migration policies emphasize stronger border controls and compliance for those required to leave, with increased support for language programs to aid integration. Welfare reforms introduce stricter measures for social benefits and extend rent caps. The energy strategy aims to reduce electricity costs while promoting gas plants and nuclear fusion. Economic growth targets prioritize key industries and tax reforms. Workforce initiatives include tax incentives for older workers and a €15 minimum wage, alongside a significant infrastructure fund proposal.
Migration Policies
The coalition document outlines a robust approach to migration, emphasizing the need for enhanced border controls to effectively curb illegal entries, including those seeking asylum. Additionally, there will be a heightened focus on ensuring that individuals mandated to exit the country comply with these requirements.
To foster the integration of new citizens, particularly children, language programs will receive increased support. The Social Democratic Party (SPD) aims to create more success stories in the realm of immigration, promoting a positive narrative around newcomers.
Welfare Initiatives
The proposed welfare reforms include a more stringent regime for social security beneficiaries. Those deemed capable of work may be removed from benefits if they decline job offers. Furthermore, the SPD plans to stimulate housing development and extend rent caps for an additional two years.
Energy Transition
In terms of energy policy, the coalition aims to lower electricity prices by 5 cents per kilowatt-hour (kWh). This reduction will be achieved by reverting the electricity tax to the EU’s minimum level and halving transmission network fees. Moreover, Germany will revive an initiative to establish 20 gigawatts (GW) of new gas power plants, while also focusing on advancing nuclear fusion technology and implementing carbon capture and storage (CCS) solutions.
Economic Growth and Industrial Strategy
The coalition sets an ambitious target of 1 to 2% economic growth following two years of recession. Key industries, including semiconductors, battery production, pharmaceuticals, and hydrogen, will be prioritized for development. A reform of the corporate tax system is also on the agenda, alongside a permanent reduction of the VAT in the gastronomy sector to 7%.
To support struggling electric vehicle manufacturers, the coalition aims to provide buyer subsidies and promises to refrain from imposing penalties on car manufacturers that exceed CO2 emissions standards. Overall, the coalition emphasizes reducing bureaucracy and enhancing digitalization across sectors.
Workforce and Financial Measures
Tax incentives will be introduced for workers who continue their employment after reaching retirement age, and increased support will be provided to motorists for commuting. Other goals include establishing a minimum wage of €15 per hour by 2026, ensuring stable pensions, and offering tax benefits for overtime work.
Attention will also focus on an upcoming parliamentary discussion on a significant €500 billion ($541.60 billion) infrastructure fund and proposed changes to state borrowing regulations, known as the ‘debt brake’, particularly aimed at enhancing defense capabilities. These measures, essential for the new coalition’s effectiveness, require a constitutional amendment and face opposition from both right and left-wing parties.