Brussels, 27/11/2013 (Agence Europe) - On Wednesday 27 November, Conservative Chancellor of Germany, Angela Merkel, concluded a coalition agreement with the Social Democrat Party (SPD), two months after her victory, but with no overall majority, in the general elections. This agreement still has to be approved by SPD activists in a referendum at the beginning of December, the outcome of which is by no means certain. If they give the go-ahead, Merkel could be elected on 17 December, by MPs in the Bundestag, as the head of a broad coalition government for a third four-year mandate. Merkel already led a broad coalition government during her first term of office (2005-2009).
The programme on which the Conservatives and Social Democrats agreed to govern Germany over the next four-year period includes the introduction of a minimum wage and banks on continuity in its European policy. It intends to introduce a minimum wage of €8.50 for all (a key SPD demand), which will enter into force on 1 January 2015 throughout Germany. Certain sectors, however, will be able to continue to apply agreements establishing lower wage levels for a two-year transition period, for example, in the arts and crafts and agricultural sectors. By 1 January 2017, at the latest, the basic level will have to apply to all. According to the DIW research institute, 5.6 million workers currently receive a wage less than €8.50 an hour.
The coalition contract reaffirms Germany's opposition to any pooling of debt in the euro zone, namely Eurobonds or other similar mechanisms. It also emphasises the country's support for the principle of “solidarity and responsibility”, that is, that each country is responsible for its own actions and finances. The government parties agreed to provide an added boost to negotiations on introducing a tax on financial transactions in the EU. In the context of the banking union, the coalition partners “reject in the long-term direct responsibility of bank risks being shouldered by taxpayers”. The coalition government contract also states that “solid public finances and balanced budgets are crucial”. Wolfgang Schäuble of the Conservatives is likely to continue as finance minister. The government programme is planning on additional spending and investment of €23 billion but taxes will not increase.
Dual nationality. The SPD won its way on this issue. The children of foreign parents born in Germany will be able to have two passports: one German and one for the parents' country of origin. Until now, they had to choose before their 23rd birthday. Only people who have been born in Germany and who have grown up there will be affected. In terms of pensions, only workers who have paid contributions for 45 years will be able to retire at the age of 63. The rule currently in force stipulates a gradual increase in retirement age to 67. (LC/transl.fl)