Tracking the making of Germany's new government

30 March

Senior SPD negotiator says coalition talks entering home stretch

Anke Rehlinger, state premier of Saarland from the Social Democrats, said the aspiring coalition partners of her SPD and the conservative CDU/CSU alliance have begun mobilising their reserves for the “home stretch” of negotiations that should take place this week.  According to newspaper WirtschaftsWoche, the negotiating parties have three weeks left to remain within their self-imposed schedule to form a new government by Easter, a move that the SPD has said will hinge on the consent of its members in an internal vote.

The parties were still in intensive talks about how to spend the money made available by Germany’s massive spending package on infrastructure and climate neutrality, the newspaper said. They also remained split over the question of how to consolidate the budget, for which tax increases have been considered.

27 March

Lead negotiators optimistic over chances for coalition treaty, CSU aims for Easter deadline

The coalition treaty of Germany’s new government could be concluded within the timeframe envisaged by the conservative CDU/CSU alliance and the SPD, the parties’ lead negotiators said in a debate hosted by public broadcaster ARD. “It’s only been four weeks since the election and we’ve already come a long way,” said Bavarian CSU parliamentary group leader Alexander Dobrindt, adding that “speed is not the aim here, but rather thoroughness.”

In an interview with news station ntv, Dobrindt said an agreement between the conservative alliance and the Social Democrats could be achieved by Easter. The SPD’s secretary-general, Matthias Miersch, said on ARD that the negotiators have recently made substantial progress on “contentious issues” and moved closer towards concluding a coalition treaty. “I believe that this coalition will come about -- but we still have lot of work ahead of us,” Miersch added.

Coalition negotiations enter next phase

Senior members of the CDU/CSU alliance and the SPD will meet on Friday, 28 March, to begin the work of settling on a final coalition agreement. The 'core' negotiating group – which includes 19 leading representatives from the parties – will come together several times now that working groups with specialist politicians have completed their preliminary work.

The parties will have to iron out differences, especially in areas such as immigration. Still, the secretaries-general Carsten Linnemann (CDU), Matthias Miersch (SPD) and Martin Huber (CSU) said: "We share the goal of laying the foundations for a strong, capable government."

25 March

Newly elected German parliament holds inaugural session

The newly elected German parliament convened today for its first session. The new parliament has shrunk in size to 630 seats, down from 733 in the previous legislative period. CDU member and former agriculture minister, Julia Klöckner, is to become the new president of the Bundestag.

24 March

German coalition negotiators agree to abolish heating law in current form – media

Members of the conservative CDU/CSU alliance and the Social Democrats (SPD), the parties leading coalition negotiations to form Germany's next government, have agreed to abolish the so-called heating law in its current form, Table.Media reported. Citing a final paper by the coalition negotiation working group on energy and climate – which was confirmed by news agency DPA – members from both parties agreed to abolish the much-debated law, which stipulates the gradual phase-out of oil and gas heating systems.

Any replacement law would need to follow European guidelines, so similarly effective measures to reduce emissions in the heating sector would need to be adopted. Subsidies for a switch to climate-friendlier alternatives should be continued, according to the media reports.

The agreement is not final and will still be subject to discussion, with changes not ruled out.  

Working groups in German coalition talks to present preliminary agreements

The 16 working groups of the CDU/CSU alliance and the SPD will submit the first results of their coalition talks to the parties’ chief negotiators by 17:00 tonight. There were clear differences in the areas of tax reform, debt relief for municipalities, the introduction of a "climate bonus" to return CO2 revenues to citizens and the revision of Germany's "heating law," Table.Media reported. Still, the working groups have to adhere to the deadline regardless of progress. Anything not agreed upon in these sub-groups will be decided by the core negotiating group.

Coalition building by Easter now unlikely – media

It is becoming increasingly unlikely that a new coalition government of the CDU/CSU and the SPD will be formed by Easter, as was envisaged by conservative leader Friedrich Merz, RTL reported. Many key issues are still unresolved in the negotiations, so there is now talk of deadlines in May, according to the broadcaster.

21 March

German state governments greenlight historic spending plan

Germany’s major spending package that contains a reform of the country’s debt brake and hundreds of billions of euros of investments in defence, infrastructure and climate action has cleared the last hurdle, as the Council of Federal States (Bundesrat) greenlighted the law proposed by the prospective coalition government of the CDU/CSU and SPD.

20 March

Parties consider cuts to budget following agreement on €500bn spending package on infrastructure and climate

The negotiating prospective coalition parties CDU/CSU and SPD have started to look into possible budget cuts after pushing for a major investment package in infrastructure and climate neutrality of 500 billion euros over twelve years. According to acting SPD chancellor Olaf Scholz, the 2025 budget still has a gap of 26 billion euros. While the special fund agreed by parliament earlier this week could provide some relief, the parties are still looking for other areas where austerity measures are possible, newspaper Merkur reported.

18 March

German parliament adopts reform to allow €500 bln new debt for infrastructure and climate

Germany's parliament has adopted a constitutional reform to allow the country to take up hundreds of billions of euros in new debt to finance defence, infrastructure and climate investments. The reform, which must still get the green light from federal state governments on Friday this week, allows the government to borrow more money through reforms and exemptions to the so-called "debt brake." Defence expenditures beyond one percent of national GDP will not count towards the debt limit, and neither will a new 500-billion-euros special fund for additional infrastructure and climate investments. The necessary two-thirds majority was reached, as 513 of the Bundestag’s 733 lawmakers voted in favour, with zero abstentions.

17 March

Climate money payout to citizens unlikely to come also under new govt - CDU

The so-called climate money ("Klimageld") payments promised as a compensation mechanism for citizens facing higher energy costs due to rising carbon prices by Germany’s outgoing government likely will also not be implemented under the prospective new coalition, CDU politician Andreas Jung told the Frankfurter Allgemeine Zeitung. Instead, the negotiating conservative CDU/CSU alliance and the Social Democrats (SPD) planned to use the expected 15 billion euros in proceeds from carbon pricing this year for lowering energy prices and grid. “Our climate money is this climate bonus,” Jung said, arguing that this mechanism also ensured the money is returned to citizens and companies. The outgoing government had planned to pay out the climate money only to citizens. Jung had told public broadcaster Dlf that the prospective coalition would still negotiate how to use emissions trading revenues in the mid-term. 

CDU climate advocates warn Merz to not abolish outgoing government’s heating law

Advocates of more ambitious climate policy from within the conservative Christian Democrat Union (CDU) have warned the party of likely incoming chancellor Friedrich Merz not to abolish the outgoing government’s controversial heating law if there is no adequate alternative in place to achieve equivalent emissions reduction in the sector, the Berliner Morgenpost reported. Thomas Heilmann, head of the CDU-affiliated Klimaunion, an association of pro-climate party members, said a legal review had shown that significant changes to the law would be difficult from a judicial point of view if they affect the law’s key aims, as Germany “is legally obliged to enact effective climate protection.” However, a reform that ensures similar or more ambitious emissions reduction would be possible. In its election campaign, the CDU had said it would repeal the law drafted by Green Party economy minister Robert Habeck. In a first agreement from the CDU’s ongoing coalition negotiations with the Social Democrats (SPD), the law was not mentioned.

14 March

2045 climate neutrality to be included in German constitution

The Green Party has successfully insisted on including the goal of greenhouse gas neutrality by 2045 in Germany’s constitution as part of their deal with the conservative CDU/CSU alliance and the SPD to support a major spending package in parliament, the Süddeutsche Zeitung reported. The goal will be mentioned in a new article in the constitution on the 500-billion-euro special fund for infrastructure investment. The article states that the fund will “raise additional investments for infrastructure and additional investments for reaching climate neutrality by 2045 with a volume of up to 500 billion euros.” However, the article does not make the climate target a new general objective of the state, but rather regulates what the special fund’s money can be used for. Legal experts say that the changes would not mean that lawsuits for more ambitious climate action from the state have a better chance of success in the future, Table Media reported. Germany adopted the 2045 target in its climate action law following a ruling by the country’s Constitutional Court that emissions reduction measures require a clear target framework to ensure greater inter-generational fairness.

Merz reaches deal on infrastructure fund by promising Greens €100 bln for climate action

Germany's chancellor-in-waiting, conservative Christian Democrat Union (CDU) leader Friedrich Merz, has reached a breakthrough deal on the 500-billion-euros infrastructure fund proposed by his prospective coalition government, by promising to dedicate a fifth of the sum to climate action. Merz agreed to transfer 100 billion euros of the sum to to the country’s Climate and Transformation Fund (KTF), which is dedicated to climate policy spending, thus securing support from the Greens, whose votes are required for the necessary constitutional changes.

13 March

SPD climate advocates call on party to uphold ambitious transformation policies  

A network of proponents of more ambitious climate policies within the SPD has weighed in on the coalition talks between their party and the conservative CDU/CSU alliance under Friedrich Merz, warning that a possible new coalition government muss remain steadfast on emissions reduction and the energy transition. “Large parts of the newly elected parliament reject responsible climate and social policy,” the network SPD.Klima.Gerecht (SPD.Climate.Just) said with a view to representatives of the climate-denialist far-right AfD, news magazine Der Spiegel reported. The SPD members said their party had a duty to defend ambitious climate policy and called for a range of measures the next government must pursue, including:

• Introducing a “climate bonus” scheme to compensate low-income households for increasing transition costs
• A far-reaching reform of the debt brake to permanently ease climate investments
• Financial relief for municipalities that have to implement climate policies
• Scrapping or at least reforming many climate-damaging subsidies
• Keeping track on phasing out oil, gas, and combustion engines
• Upholding the ‘Germany Ticket’ for countrywide public transport use

Merz makes climate spending offer to Greens as formal coalition negotiations start

Official coalition negotiations start today (13 March), preceded by a parliamentary debate on the planned constitutional changes to allow more debt for defence and infrastructure spending.

Deutsche Welle reported that chancellor candidate Merz in the debate sought to respond to the Green Party’s demands, promising to devote 50 billion euros from the planned special infrastructure fund to the country’s Climate and Transformation Fund (KTF). The KTF is dedicated to climate policy spending and played a central role in the outgoing government’s collapse, as a constitutional court ruling 2023 found it to be filled with unlawfully booked funds due to the debt brake. The CDU leader reportedly also said that the debt brake could be lifted for investments in civil protection, which could include costly climate adaptation measures.

12 March

Conservatives want to elect Merz as chancellor on 23 April

The conservative CDU/CSU alliance has drawn up a detailed internal timetable for establishing a new government, which has been leaked to Reuters, according to ntv. The alliance would like to sign the coalition agreement it is seeking with the SPD in the week commencing on 14 April. The election of CDU leader Friedrich Merz as the new chancellor is scheduled for 23 April in the document, Reuters reported. Formal coalition negotiations have not even started, and it remains unclear how long they will last, even though Merz has repeatedly said he wants to conclude negotiations around Easter (20 April).

Parties name working group leaders for coalition negotiations

CDU deputy leader Andreas Jung, who has long been the climate and energy spokesperson for the party, will lead the party's working group on these topics during the upcoming coalition negotiations, the party said. Lower Saxony’s transport minister, Olaf Lies, who is also a known expert on these topics, will lead the SPD’s corresponding negotiating team, the party said.

10 March

Left Party and far-right AfD challenge plans to reform constitution in outgoing parliament

The Left Party has lodged a challenge with Germany's highest court against plans from the country's budding coalition for a constitutional amendment to unlock hundreds of billions of euros with the support of majorities in the outgoing parliament. The party said it considers it inadmissible to make such far-reaching decisions with old majorities, Spiegel reported, adding that many newly elected members of parliament would be ‘excluded and exempted’ from the decision.

The far-right AfD also lodged urgent legal motions with the constitutional court challenging plans to convene the country's outgoing parliament to consider the constitutional changes needed to introduce the planned 500-billion-euro special fund for infrastructure, Reuters reported.

Coalition negotiations between CDU/CSU and SPD to formally start on 13 March

Coalition talks between the CDU/CSU alliance and the Social Democrats (SPD) are set to start on Thursday, 13 March. There should be first results from 16 working groups (each consisting of 16 people) as a basis for further talks after 10 days, newspaper Spiegel reported.

Greens may refuse to back Merz in threat to massive debt plans

The Greens may refuse to back plans by likely next chancellor Friedrich Merz for a massive increase in state borrowing. The leaders of the Green parliamentary group Katharina Dröge and Britta Haßelmann said that they recommended to their camp’s lawmakers to not support the constitutional reform necessary to allow more debt for defence and infrastructure spending.

CDU/CSU and SPD agree to enter formal coalition negotiations

After laying out first policy proposals in an 11-page document at the end of first exploratory talks, the CDU, CSU and SPD each agreed to enter formal coalition negotiations.

7 March

Exploratory talks enter final stretch

Several German media report that the exploratory talks – the so-called ‘Sondierungsgespräche’ to sound out whether forming a coalition is feasible and under which conditions negotiations would take place – could end as soon as today, or over the weekend. If successful, the parties will then decide to enter formal coalition negotiations, which will likely last for several weeks and conclude with a coalition treaty. CDU leader Friedrich Merz has said that he wants a new government formed before Easter.

Draft law does not specify sectors for planned German infrastructure fund

First draft proposals for changes to the constitution to introduce a special fund for up to 500 billion euros worth of infrastructure investments in Germany did not specify any sectors for which the money would be used.

EU to profit from German infrastructure spending plans – analysts

Analysts said that the European Union as a business location would profit from additional infrastructure investments planned by the likely next German government.

6 March

First session of new parliament on 25 March

The new parliament (Bundestag) after the election will come together for its first session on 25 March. Lawmakers will decide rules of procedure and vote on a new parliament president.

5 March

Likely next German govt parties agree debt rules bypass for defence and infrastructure, climate focus unclear

Germany’s likely next government coalition parties have proposed an overhaul of state debt rules to make hundreds of billions of euros available for defence and infrastructure investments. The agreement, which faces a big hurdle in the two-thirds majority requirement in parliament, marks the first major deal in the coalition talks between the conservative CDU/CSU alliance of chancellor candidate Friedrich Merz and the Social Democrats. Details regarding what the infrastructure funding would be used for so far remain largely unclear. The Green Party as well as NGOs have called for clarity that climate action and the transition to a sustainable economy become a spending focus.

4 March

Greens call for debt limit reform instead of emergency funding

The Green Party, whose votes would be needed to set up new debt-financed emergency funds for security and infrastructure investments, called for a “fundamental reform of the debt-brake”, Germany’s national rule to limit public debt, reported Tagesspiegel Background. Co-party leader Felix Banaszak said his party is “not convinced” of emergency funds currently debated by the conservatives and the SPD in their exploratory talks to form the next coalition government.

NGO calls for “robust and just” federal budget instead of special funds

The environmental NGO Greenpeace has said that proposals to introduce new emergency funding for infrastructure investments fall short of what is actually needed – a “robust and just” German budget. The organisation called for more funds from the rich to help make Germany “future-proof”.

3 March

CDU/CSU and SPD consider special funds for defence and infrastructure in exploratory talks

As exploratory talks to form a new federal government are underway, the conservative CDU/CSU alliance and the Social Democrats (SPD) are considering two special funds worth hundreds of billions of euros for defence and infrastructure respectively, with plans to set them up by the outgoing parliament, Reuters reported.

The hope is that the funds, which could be worth around 400 billion euros for defence and 400-500 billion euros for infrastructure, will be approved by the outgoing parliament, the news agency reported. This would enable Germany to act quickly amid a volatile geopolitical environment.

Installing such funds requires a two-thirds majority in parliament. However, following the snap election on 23 February, once the new parliament is set up by late March, the far-right AfD and the Left Party, both of which are critical towards the plans, will make up more than a third of lawmakers, which could delay action, or make it impossible.

The Green Party has said they would support an amendment to the country's debt rules, which are written into the constitution, to set up the funds, according to Tagesspiegel Background. However, party leader Felix Banaszak argued that an increase in security spending must be accompanied by other investments. "We don't want to buy this at the price of our society falling apart, of climate protection falling by the wayside and of no more investment in schools and daycare centres," he said.

Environmental NGOs called on the SPD and CDU/CSU alliance to focus more on climate protection after initial exploratory talks. "Short- and long-term interests must be well balanced to avoid increasing uncertainties – for example, with regard to natural resources, drinking water or extreme weather events," NABU head Jörg-Andreas Krüger told broadcaster RND.

SPD leader Lars Klingbeil told public broadcaster ARD that the first exchange on Friday (28 February) was constructive and confidential. The next round of exploratory talks started today.

28 February

CDU and SPD begin exploratory talks

The conservative CDU/CSU alliance and the Social Democrats (SPD) today begun exploratory talks to form a coalition. Nine representatives of each party will be present, and are set to come up with rough lines and a timetable for formal coalition talks. Observers expect difficult negotiations, as considerable differences on government borrowing and migration, as well as energy policy will have to be overcome.

Merz has previously stated the goal of forming a coalition by Easter (20 April).

27 February  

AfD demands more influence in new parliament as second biggest party

The far-right AfD has demanded more influence in Germany’s next parliament that will convene on 25 March, given its success at the election, in which it doubled its share of the vote to more than 20 percent. Party leader Alice Weidel said she hoped that “other parliamentary groups do not continue their approach to the AfD” and integrate the party, whose state-level groups in eastern Germany have been classified as “proven right-wing extremist” by the domestic intelligence agency Federal Office for the Protection of the Constitution (BfV).

Weidel said her party had the right to pick the parliament’s vice leader, head several parliamentary committees and get access to the national secret services control body. Other parties so far often have prevented the climate-denialist AfD from relevant positions in the legislative body. Members of parliament are not obliged to vote for a representative of any one party as parliament leader. As the second strongest party in the new parliament, the AfD will receive more money, more speaking time and therefore likely also more influence than in previous ones, news station ntv reported.

26 February

Germany’s former reactor operators lukewarm on Merz’s nuclear “dismantling moratorium” idea

A proposal by Friedrich Merz, Germany’s likely next chancellor, for a “moratorium on dismantling” the remaining decommissioned nuclear reactors in the country was met with reluctance by former nuclear plant operators. They said that stopping or even reversing the decommissioning process would take many years and enormous investment, as well as entail "substantial regulatory, financial, and staffing hurdles."

Merz rules out quick reform of debt brake

The conservative CDU leader and likely next German chancellor, Friedrich Merz, has rejected the idea of a quick reform to the country's constitutionally enshrined limit on new government borrowing, broadcaster MDR reported. Both him and current chancellor Olaf Scholz from the centre-left SPD had floated the idea to reform the so-called "debt brake" to unlock funds to increase defence spending, but also to enable much-needed future industry and infrastructure investments.

"It is out of the question that we will reform the debt brake in the near future," Merz said. "If it takes place at all, it will be a rather extensive and difficult task." Instead, his party favours a special fund for defence spending.

Germany requires a two-thirds majority in parliament for amendments to the constitution.

25 February

Merz and Scholz mull debt brake reform with outgoing parliament to avoid blocking minority

The outgoing German parliament could use the time left until it dissolves and newly elected representatives constitute the next Bundestag on 25 March to adopt a reform of the country’s debt brake. Both current chancellor Olaf Scholz of the centre-left SPD and centre-right CDU leader Friedrich Merz, whose party won the election, said that a reform of the constitutional ceiling on new government borrowing was on the cards before the next parliament takes over.

Due to the election result, the far-left Left Party and the far-right AfD have a blocking minority and could prevent the two-thirds majority needed in parliament to change the constitution. “Whether we should or must make a decision here will be discussed with the other parties that currently still have a mandate,” CDU leader Merz said, adding that this would include possible votes by the Green Party and also by the pro-business FDP, which will no longer be represented in the next Bundestag.

Chancellor Scholz said taking decisions with an outgoing parliament would be “rare but not impossible.” While the AfD has said it rejects a reform of the rule outright, the Left Party has been open to removing the debt brake but generally avoids increased defense spending, one of the main tasks a new government will likely have to find funding for.

SPD leader says coalition agreement with Merz’s CDU far from being done deal

The SPD’s co-leader, Lars Klingbeil, has sought to cool down expectations of a fast coalition formation in Germany between his Social Democrats and the conservative CDU/CSU alliance under chancellor candidate Friedrich Merz. Klingbeil said it was not a done deal that his party will agree to form a coalition with Merz’s conservative alliance given the two parties’ differences in important policy areas and also due to Merz’s individual “course of action and tone.” The SPD co-leader said the expectation was for Merz to change his approach and make an offer to his potential coalition partner that makes a partnership attractive to them. This would include solutions to increase people’s purchasing power, stabilising pensions and enabling billions of euros in urgent investments. A coalition between the SPD and the CDU/CSU is seen as the only realistic two-party government that is possible after the snap election.

Climate not a priority for most voters – exit polls

Climate action did not play a major role in the decision of most voters at the snap election, exit polls made on election day have shown. Only 13 percent of surveyed voters said the topic had been a priority for them, compared to 18 percent saying domestic security was most important, followed by migration (15%), economic growth (15%) and international security (13%).

24 February

Conservative election winner Merz seeks coalition with SPD, Greens sidelined

Conservative CDU/CSU leader Friedrich Merz wants to enter coalition talks with the Social Democrats (SPD) of outgoing chancellor Olaf Scholz, after the elections’ result has paved the way for the two parties to form a government without a third party. The Green Party’s chances to get a seat in the country's next leadership therefore look very slim, meaning the party will likely not be able to continue to pursue its ambitious climate and energy policy in a new government. However, while a revival of the coalition between the conservatives and the SPD is unlikely to give decarbonisation a boost in Germany, the parties together have overseen effective climate and energy policies in the past and stand the best chance of all constellations to form a new government quickly -- an outcome that both German voters and the country’s international partners hope for given the numerous challenges ahead.

BSW considers legal review of election results

The left-wing and anti-immigration Sahra Wagenknecht Alliance (BSW) is considering having the result of Germany's federal election legally reviewed, public broadcaster ARD reported. The claim is based on the fact that many registered German voters living abroad complained they could not cast their votes due to the short snap election deadlines.

Around 230,000 German voters are registered outside of the country, and the BSW fell around 13,400 votes short of clearing the five percent threshold to enter parliament, ARD reported. "The question of the legal validity of the election result arises," party leader Sahra Wagenknecht said.

CDU to lead coalition negotiations, majority possible with SPD

The conservative CDU/CSU alliance has won the most votes in Germany's snap election on 23 February – but it was one of the party's worst election results in history. The party under its chancellor candidate Friedrich Merz received 28.5 percent of the vote, according to preliminary results carried by public broadcaster ARD.

The far-right Alternative for Germany (AfD) followed with 20.8 percent – doubling its support compared to the previous election. In third place, Olaf Scholz's SPD suffered major losses, scoring 16.4 percent. They were followed by the Green Party (11.6%) and the Left Party (8.75%).

Uncertainty abounded when polling agencies published their first projections, as it was unclear whether the pro-business Free Democrats (FDP) and the left-wing anti-immigrant and pro-Russia Sahra Wagenknecht Alliance (BSW) would clear the five percent threshold to make it into parliament. This, in turn, would have had a huge impact on whether a two-party coalition was possible, or whether a three-party coalition was necessary to achieve a parliamentary majority.

In the end, neither party cleared the threshold (4.9% for the BSW and 4.3% for the FDP), meaning that the CDU/CSU can secure a majority government by forming a coalition with the SPD without having to rely on other parties.

Coalition negotiations can take weeks or even months. Germany is unlikely to have a new government before late spring 2025, but CDU leader Merz signalled he aims for a speedy conclusion of coalition negotiations.