Germany’s coalition advances election law and broader reform agenda

The black‑red coalition in Germany is preparing a sweeping reform package that targets the labour market, pensions, income tax and bureaucratic reduction. Leaders from the CDU/CSU and SPD – including CSU head Markus Söder, CDU chief Carsten Linnemann and SPD’s Lars Klingbeil – met ahead of a coalition committee session slated for July 1, with employers and trade unions invited to shape the proposals. While business groups welcome the push for competitiveness, the DGB union federation has warned against cuts to health insurance and pension benefits.

At the same time, the coalition’s attempt to overhaul the 2023 “ampel” election law has stalled. The CSU is urging that the reform be cemented in the coalition contract, whereas the SPD insists on a gender‑parity clause for Bundestag seats. The dispute centres on preventing the parliament from expanding unchecked, with discussions of a “Grabenwahlrecht” split between direct constituency winners and list candidates. Additional proposals under review include lowering the voting age to 16 and further measures to ensure balanced gender representation.