Germany’s new coalition government leaders, including the Christian Democratic Union (CDU), the Social Democratic Party (SPD), and the Christian Social Union (CSU), unveiled their coalition agreement on April 9, 2025, in Berlin, focusing on a range of critical issues, including stricter migration policies and limiting workers from the Western Balkans.
Friedrich Merz, CDU leader and potential future chancellor, described the agreement as a clear signal to Europe that “Europe can count on Germany.”
The coalition aims to stimulate Germany’s economy, which has entered its third year of recession, with several measures, including tax reductions for businesses, energy tax cuts, and exemptions for overtime work. The government also intends to ease the so-called “active pension,” allowing pensioners to work without taxes.
Another major goal is reducing bureaucracy, with plans to create a Ministry of Digitalization to make Germany more attractive to investors and professionals looking to relocate. “Old equipment, such as fax machines, must be phased out,” said SPD co-chair Lars Klingbeil.
Stricter Migration Policy
The coalition agreement highlights a significant shift in Germany’s migration policy, with Merz announcing new measures, including border controls, the end of voluntary admission programs (such as for Afghan refugees), and a suspension of family reunification for war refugees. Ukrainians arriving in Germany will no longer automatically receive social assistance, and changes to citizenship law will remove the accelerated naturalization process, which previously allowed citizenship after just three years of residence.
Reduction of Workers from the Western Balkans
The new policy also aims to limit the number of unqualified workers from the Western Balkans, which had previously allowed around 50,000 workers annually. The number will be reduced to 25,000. The decision to cut the number of workers is partly in response to the financial burden on local municipalities.
Integration of Western Balkans and Ukraine
The coalition agreement emphasizes the strategic interest of integrating the six Western Balkans countries, as well as Ukraine and Moldova, into the European Union. The Berlin Process, an initiative by former Chancellor Angela Merkel, will remain active as a platform to offer clear and sustainable EU membership perspectives to countries in the region.
CDU Takes Foreign Ministry
For the first time in decades, the Foreign Ministry will be led by the CDU. While the new foreign minister has not been officially announced, Johann David Wadephul, a veteran member of the CDU/CSU and a long-time expert on the Western Balkans, is widely rumored to take the position.
The new German government is expected to be formed in early May after the coalition agreement is approved by the base of the three parties.
