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Key Points of Germany's New Coalition Agreement

The CDU/CSU and SPD have formed a new coalition government in Germany, outlining key policy changes in immigration, fiscal policy, pensions, and digitalization. The agreement, titled 'Responsibility for Germany,' aims to strengthen Germany's role in the European Union while addressing domestic challenges.

Immigration and Asylum

The coalition will tighten immigration and asylum policies. This includes:

  • Increased border controls and cooperation with neighboring countries to reject asylum seekers at borders.
  • Expansion of the list of safe countries of origin, adding Algeria, India, Morocco, and Tunisia.
  • Limiting family reunification for asylum seekers with limited status for two years.
  • Automatic deportation for serious crimes, including expedited expulsion procedures, and airlines being mandated to transport deportees.
  • Removal of the fast-track naturalization process introduced by the previous government.

Fiscal Policy

The agreement includes:

  • A gradual reduction of corporate tax in five stages to 1% annually starting January 1st, 2028.
  • Reductions in electricity tax for businesses and consumers.
  • Increase in minimum wage to €15 per hour.
  • Tax reductions for low and medium-income earners.
  • Reform of the basic subsidy system with stricter conditions for receiving unemployment benefits.

Pensions

The pension level will be maintained at 48% of the average German salary until 2031. The government will also encourage continued voluntary work among retirees, allowing tax-exempt income up to €2,000 per month.

Digitalization

A new ministry dedicated to digitalization and modernization of the state will be created to address Germany's technological lag.

Ministry Distribution

The CDU will lead the ministries of Foreign Affairs, Economy and Energy, Family, Health, Transport, and the new Digitalization Ministry. The CSU will oversee Interior, Research, Technology and Aviation, and Agriculture. The SPD will control Defense, Finance, Justice, Labor, Environment, Development Cooperation, and Housing.

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