Budget and taxes: Conservatives, FDP and Greens agree on “common working basis” for coalition talks, including possibility of cutting climate-harmful subsidies

In a second round of coalition talks, representatives from CDU, CSU, FDP and the Green Party agreed on “a common working basis” in the areas of budget, finances and taxes, Green leader Cem Özdemir said in a video message after the meeting. A paper published on Twitter by several participants shows the parties agreed not to increase Germany’s public debt, and to cut taxes for low-incomes households and those with children. On energy and climate policy, a “Jamaica” coalition would fund energy-efficient home renovations, and cut subsidies. “We will especially examine subsidies that contradict the climate goals,” the paper says. In 11 further meetings, the parties will identify and balance investment needs in all areas. The CDU, CSU, FDP and Green Party are now weighing up the possibility of entering official coalition negotiations, which could start mid-November and last into 2018.

Watch the Greens’ video in German here, find the agreement in German in this Twitter post, and find the Reuters article in English here.

Stay up to date with CLEW’s coalition watch and find background in the factsheet The long road to a new government coalition in Germany.