Coalition Talks: CDU and SPD Negotiate Germany's Future

The conservative bloc under Friedrich Merz and the Social Democrats (SPD) are in talks to form a coalition agreement. Although SPD finished third in the elections, they are pivotal in coalition talks as other parties won't work with the far-right AfD. Issues discussed include taxation, immigration, and foreign policy.

Germany's political landscape teeters on a delicate balance as the conservative bloc led by Friedrich Merz and the Social Democrats (SPD) engage in coalition formation talks. Voters placed Merz's Christian Democrats (CDU) alongside their Bavarian counterparts, the CSU, at the forefront in the recent elections while Olaf Scholz's SPD trailed at third.

Despite their electoral position, the SPD stands as the key partner for Merz's strong coalition vision, as a pact with the far-right AfD is off the table. Historically accustomed to coalition governance, both parties face divergent views on critical issues such as taxation, immigration, and foreign policy, particularly towards Israel.

An ambitious consolidated governing plan is underway, involving discussions on financial, economic, migration, and security policies. Notably, proposals differ significantly on taxation strategies, surveillance powers, and foreign policy ambitions. Meanwhile, both blocs align on expanding government borrowing to bolster national defense and infrastructure.

(With inputs from agencies.)