German coalition committee meets as partners disagree on reforms

The coalition committee of the German federal government was due to meet on the evening of 7 October, Tagesschau reported. According to the outlet, no concrete decisions on disputed projects were expected, but a timetable for implementation was possible.

Tagesschau reported that the black-red coalition of the CDU/CSU and SPD wants to advance its reform plans, but the partners disagree on important projects. According to the outlet, the SPD is demanding changes to the reform package, while Chancellor Friedrich Merz and the Union want to continue the previous line. The committee agreed the package at its last meeting in early July, covering pensions, taxes, care and the labour market; Tagesschau reported some parts are done while many points remain disputed.

SPD parliamentary group leader Matthias Miersch said before the meeting that he expected a "very honest discussion with each other about how we tackle the tasks in the coming months", according to Tagesschau. Union parliamentary group leader Thorsten Frei (CDU) said the question was "in what order and how we want to work through this big mountain of work in the coming weeks", the outlet reported.

Tagesschau reported that the September state elections brought partly drastic losses for the governing parties, and that the committee was likely to discuss whether consequences should be drawn for its course. According to the outlet, the election of the first AfD state parliament president in Saxony-Anhalt, possibly with votes from the CDU, was also likely to overshadow the topics.

On the budget, Tagesschau reported that if revenue from planned tax increases is missing, Klingbeil's budget is in a poor position. The outlet reported additional Union demands, including higher parental allowance and compensation for inflation-driven 'cold progression', a term for inflation pushing taxpayers into higher tax brackets. According to Tagesschau, Klingbeil's draft for the 2027 federal budget would then no longer add up; deliberations are running in the budget committee, with a reconciliation session in mid-November meant to finalise the budget and a Bundestag vote at the end of November. The outlet reported that parliamentarians would still need to find several billion euros, and that the coalition does not rule out postponing the date, with possibly no budget passed before the end of the year.

Tagesschau reported that the coalition agreed in its coalition agreement to introduce a weekly maximum working time instead of the fixed eight hours per day, but that the project has barely advanced. According to the outlet, the SPD base is increasing pressure, with party working groups demanding the weekly working time apply only under certain conditions, for example only in companies with collective agreements; the demands are likely to meet resistance from the CDU/CSU. The outlet also reported that the federal cabinet set the care reform in motion last week, with a first step concerning the financing gap.