Weeks of public disagreements have dominated the image of Germany's ruling coalition, and now the Union and SPD are looking to chart a course forward together. On Tuesday afternoon, the coalition's top leaders gathered at the Chancellery for a coalition committee meeting. Sources from both the Union and the SPD confirmed that no landmark decisions were expected. Instead, the focus was on exchanging views on contentious issues and agreeing on how to proceed.
Vice Chancellor Lars Klingbeil (SPD) described the coalition committee meeting as a "working session" from which he hoped to see at least a roadmap for the government's upcoming reform agenda. Speaking in Leipzig, he said: "I want to achieve something together." The Union side echoed similar sentiments, stating that the meeting was primarily intended for planning and an exchange of opinions.
SPD co-chair Bärbel Bas struck a more cautious tone ahead of the talks. "The differences between the Union and us have rarely been as noticeable as they are today," said the Federal Minister of Social Affairs at the DGB Federal Congress. She added that this was leading to "tough discussions within the federal government."
At the heart of the summit was the question of money. The leaders were set to discuss how citizens could be offered financial relief after the Bundesrat blocked the planned €1,000 relief bonus. The talks were expected to focus on alternatives to the failed measure, which had been introduced in response to soaring energy prices triggered by the Iran war.
The coalition leaders also planned to address the proposed income tax reform and spending cuts for the 2027 budget. Both sides agree that from next year, small and medium incomes should be taxed less. However, the question of how to pay for these cuts remains deeply divisive. The SPD wants to raise taxes on top earners, a position Klingbeil reaffirmed on Tuesday. The Union rejects this approach and instead favours savings within the federal budget.
Union parliamentary group leader Jens Spahn (CDU) floated the idea of blanket cuts to subsidies and tax breaks using a so-called lawnmower approach. He said he believed "that a flat-rate cut, a uniform reduction of all subsidies and tax incentives by five percent, is the right way forward." Speaking on the podcast of the news portal Table.Briefings, Spahn argued that such a move would generate billions in savings and likely enjoy "greater public acceptance than working through each individual subsidy one by one."
Finance Minister Klingbeil signalled a degree of openness to the proposal. He acknowledged that there was "room for savings" in the federal budget, adding: "and that is why I am initially open to such a proposal." The SPD leader expressed his hope that the coalition committee would agree on a "large, fair overall package" for the weeks ahead.
He also acknowledged that the coalition needed to reflect on recent weeks, saying: "I don't need to beat around the bush, the infighting has overshadowed everything in recent weeks."
Left Party parliamentary group leader Heidi Reichinnek was sharply critical. "You actually no longer have any expectations of this coalition committee, but the fear is that the coalition partners will still manage to disappoint," said the Left Party politician to AFP.
She pointed out that the coalition's only relief measure so far had been the two-month fuel discount, which she said was "not even being fully passed on by the oil companies." Reichinnek called for an "energy crisis payment" for all citizens and demanded the Deutschlandticket be offered at a price of nine euros.
Greens leader Franziska Brantner dismissed Spahn's call for across-the-board subsidy cuts as evidence of the government's inability to set priorities. "To now say, we'll take the lawnmower approach, five percent everywhere, that is a damning indictment," she told Welt TV. "It is the job of this government to set priorities." Brantner urged the coalition to end its infighting and finally put a reform agenda in motion.
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