Germany’s coalition talks: where policies overlap and diverge

More new borrowing, but only within the framework of the debt brake

Higher rate of income tax for top earners

Maintain ‘Soli’ for the 10% of top earners — the solidarity surcharge on taxes introduced to pay for German reunification

Reintroduce wealth tax, with a 1% tax on large assets

Reform inheritance tax

Introduce a financial transaction tax

No tax rises

No change to the constitutional restriction on new borrowing, known as the ‘debt brake’

Swift return to balanced budgets

Tax on corporate profits to be capped at 25%

Gradual abolition of the ‘Soli’

No change to debt brake

Top rate of income tax should apply only to annual income above €90,000

Abolish ‘Soli’

No wealth tax or increase to inheritance tax

Welfare spending capped at 50% of budget

Corporate tax reduced to 25%

Debt brake to be relaxed to allow borrowing for investment

Higher top rate of income tax

Wealth tax of 1% on assets above €2m

Massive investment offensive — totalling €50bn a year over the next decade — in areas such as fast internet, renewable energy and ‘climate-neutral infrastructure’.

Turn the EU Stability and Growth Pact (the bloc’s fiscal rules) into a ‘Sustainability Pact’

Push for European capital markets union

Less conservative fiscal policies; rather a ‘social-ecological’ investment policy

Europe should be leader in international crisis prevention

Qualified majority voting in EU foreign policymaking, rather than unanimity

New start in relations with US

Commitment to Nato

Reform the European Stability Mechanism — the eurozone’s provider of emergency loans, set up after the 2011 eurozone debt crisis

Complete banking and capital markets union

Maintain sanctions against Russia

Continue to see China as a ‘competitor, partner and systemic rival’ but co-operate with Beijing ‘where possible’

Strong commitment to Nato and its goal to spend 2% of GDP on defence

Armed forces should get armed drones and rise from 184,000 strength to 203,000

New national security council to co-ordinate foreign and defence policy

Strengthen EU institutions such as European parliament

Qualified majority voting in EU foreign policymaking

Need for a European army

Strict adherence to EU fiscal rules in Stability and Growth Pact

No move to turn the EU into a ‘debt union’

New start in relations with the US

Commitment to Nato

Qualified majority voting in EU foreign and defence policy

More EU investment in climate protection, digitisation and education

Turn Stability and Growth Pact into a permanent ‘investment and stabilisation instrument’ controlled by the European parliament

Stop Nord Stream 2 gas pipeline from Russia

New strategic direction for Nato, including resumed security dialogue and military contacts with Russia

Reject Nato goal to spend 2% of GDP on military

Carbon neutrality target: 2045

Electricity should be entirely renewable by 2040. Make Germany a leader in hydrogen technology by 2030. Abolish the EEG (the consumer surcharge on electricity bills to fund renewables) by 2025

Public transport to be made more climate friendly. Make rail travel cheaper than flying in Europe

Cars: aim for at least 15m fully electric cars on German roads by 2030. 130kph speed limit

Carbon pricing: low-income residents should be compensated for increases in carbon taxes

Carbon neutrality target: 2045

By 2030, a 65% reduction in emissions compared with 1990; by 2040, an 88% reduction. Emissions trading should be increased and expanded across Europe

Renewable energy: immediately scrap the EEG; accelerate the expansion of renewables and make Germany the number one hydrogen producer

Public transport: expansion of railways and more night trains across Europe

Cars: expand use of electric cars and vehicles using synthetic fuels. No ban on diesel vehicles, no speed limit

Carbon neutrality target: 2050

Quickly extend emissions trading to all sectors

Renewable energy: abolish the EEG and electricity tax. Support renewable energy with focus on hydrogen

Privatise trains to cut prices and improve services. Railway networks should remain state-owned

No ban on fossil fuel vehicles, no speed limit, no subsidies for electric vehicles

Carbon pricing: implement uniform, market-based price worldwide. Counter rising costs through a ‘climate dividend’ from CO2 revenues to citizens

Carbon neutrality target: within the next 20 years. Exit from coal should be brought forward from 2038 to 2030

Reduce emissions by 70% by 2030. By 2035, Germany should depend fully on renewable energy

Invest €100bn in railways and stations by 2035. Trains should make short-haul flights superfluous by 2030. Improved rural public transport

Cars: 15m electric vehicles on the streets by 2030, new vehicle registrations at that point only for emissions-free cars. Speed limit of 130kph

Carbon pricing: raise to €60 a tonne by 2023 and gradually increase further. Carbon tax revenues should be paid back to citizens

Reform EU asylum system through joint distribution mechanism

Improve legal pathways to asylum and address root causes of migration. Facilitate permanent residency for well-integrated immigrants

Lift restrictions on family reunification

No forced deportations to dangerous countries

Modernise citizenship law to allow multiple nationalities. Remove hurdles to naturalisation

Reform EU asylum system to address root causes of flight, and create common standards on sharing costs and burdens

Cut number of refugees to Germany

Targeted immigration seen as an asset — provided it is orderly and leads to successful integration

Simplify procedures for recognising foreign qualifications

War refugees to be offered temporary humanitarian protection, and be distributed among EU member states

Improve pathways to legal immigration. Adopt Canada-style points-based system for immigration

Well-integrated refugees with temporary protection status should be able to immigrate and enter workforce

Enforce consistent deportation of rejected asylum seekers

Streamline naturalisation process and decrease to four years; allow multiple nationalities

Develop mechanism to register refugees at external EU borders and swiftly distribute them

Reject all camps and transit zones. Reject deportations to so-called ’safe countries of origin’ or to countries at war or in crisis.

Offer pathways for migration for education and work, including for low-skilled labour

Lift restrictions on family reunification

Accelerate asylum procedure and offer right to stay to those with irregular status after five years

Ease citizenship and naturalisation laws; allow multiple nationalities

Keep pensionable age at 67

Pension ratio (ie the ratio of a worker’s pension to their average salary) to be maintained at 48 per cent.

Everyone should be required to pay into the state pension scheme, including the self-employed

Occupational pensions should be expanded and made more attractive

Maintain pensionable age at 67

Consider the creation of capital-based pension provision

Self-employed people will be required to pay into a pension scheme

Make pensionable age more flexible. Some people should be able to decide at the age of 60 if they want to retire

Introduce ‘share pension’, in which a small part of an employee’s pension contribution is invested in a fund 

Stick to pensionable age of 67 but make it simpler for people to retire earlier or later

Pension ratio to be maintained at 48%

Turn pension provision into a ‘citizens’ insurance’ involving more people, such as the self-employed and MPs

Consider creation of capital-based pension provision

Employers should offer workers an occupational pension