
No substantive decisions expected: After electoral defeats, the coalition is discussing future course and controversial reform projects.
AI-generated summary
The coalition committee is discussing a reform package approved in July, which covers areas such as pensions, taxes and care. The government is under political pressure after state elections.
The coalition committee of the federal government meets in the evening. Specific substantive decisions on controversial projects are not expected, but a timetable for implementation may be.
In any case, there should be an open discussion about whether consequences should be drawn for the future course from the state elections in September, which sometimes resulted in drastic losses for the governing parties. The election of the first AfD state parliament president in Saxony-Anhalt, possibly with votes from the CDU, is also likely to overshadow many issues. At the same time, the black-red coalition has decided to speed up the planned reforms. The SPD is calling for changes to the reform package, while Chancellor Friedrich Merz and the Union want to continue the current line.
SPD parliamentary group leader Matthias Miersch said before the meeting that he expected a "very honest discussion with each other about how we will now tackle the tasks in the next few months." Union parliamentary group leader Thorsten Frei (CDU) said it was now a question of “in what order and how we would like to process this large mountain of work in the next few weeks”.
At its last meeting at the beginning of July, the committee decided on a reform package that contains regulations on pensions, taxes, care and the labor market. Some things have already been checked off, but there are still disputes in many areas. These are the sticking points:
The household
If there is no revenue from the planned tax increases, things will be bad for Klingbeil's budget. Additional demands from the Union are also under discussion, such as higher parental allowance and compensation for the cold progression caused by inflation. This means that Klingbeil's draft for the 2027 federal budget is no longer likely to work. This is now primarily a problem for the coalition factions' budget holders. Discussions are currently underway in the budget committee. Everything is scheduled to be finalized in the so-called adjustment meeting in mid-November and voted on in the Bundestag at the end of November. But the parliamentarians would still have to raise a few billion for this. The coalition cannot rule out the possibility that the date will be postponed and that no budget will possibly be passed before the end of the year.
The working time reform
The coalition wants to make working time rules more flexible. In their coalition agreement, the Union and the SPD agreed to introduce a maximum weekly working time - instead of the fixed eight hours per day. So far, the project has made little progress, which is why the SPD base is now increasing the pressure. Various party working groups demand that this weekly working time only occurs under certain conditions - for example only in companies with collective agreements. The demands are likely to meet with resistance from the CDU/CSU.
The nursing reform
The nursing care reform was launched by the federal cabinet last week. The first step was to close the financial gap in long-term care insurance. In a second step, the insurance should be fundamentally reformed. Because: More and more people are dependent on care, but at the same time there are fewer people who pay money into insurance. The appointment of a nursing commission planned for today was postponed at short notice.
Federal Health Minister Carsten Linnemann from the CDU expects the experts to make suggestions by the end of January on how the system can work in the long term.
The pension reform
There was also a commission for pensions. In the summer she presented a package of various measures. The goal: to make pensions affordable and fair to younger people in the long term. The planned abolition of the pension without deductions after 45 years of contributions - also colloquially known as "pension at 63" - is particularly controversial.
For many in the Union, it is primarily an expensive gift for high-earning professionals who have not worked hard physically. For the SPD, it is more about recognition after 45 years of work. Anyone who has paid in for so long should also have the opportunity to retire earlier without deductions.
The tax reform
The tax reform is intended to relieve the burden on people with low and middle incomes of several hundred euros per year. For this purpose, among other things, the basic tax allowance should be increased - this is the amount on which no income tax is due.
The federal government has already launched the draft law for the reform. He is scheduled to be discussed in the Bundestag for the first time on Thursday. However, there is criticism: the Union finds the relief too small and rejects new or higher taxes. That's why a lot of things could change in the plans.
The sugar tax
The planned sugar tax is intended to achieve two main things: people should live healthier lives and the state should earn more money. The draft law from the Ministry of Finance stipulates that a tax should be payable from five grams of sugar per 100 milliliters, which should encourage manufacturers to mix less sugar into their drinks. The income is primarily intended to help close the financial gap of the statutory health insurance companies.
But this plan is stuck for the time being, because many people in the Union fear that the tax could be a burden for medium-sized beverage manufacturers. The current draft envisages the new levy from July.
AI outlook — possibilities, not facts
Discussion of the tax reform bill in the Bundestag on Thursday.
Very likely · Within days

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