Coalition negotiations: black-red drags its feet

Coalition negotiations: black-red drags its feet

The first cornerstones of the energy turnaround were agreed on monday in the rough round – but many details on the intended containment of rising electricity prices are still unclear. Planned cuts in the expansion of wind energy could still meet with resistance in SPD-governed northern lander. Tenants to be better protected in future from horrendous rents.

At the halay point of the coalition negotiations, the party leaders took over the reins of power after just under three weeks. For the first time, angela merkel (CDU), horst seehofer (CSU) and sigmar gabriel (SPD) held a small meeting with just a few people they knew. Merkel spoke of a good interim result. The coalition agreement is due to be signed on. November. The working groups must be ready a week in advance.

When asked how far black-red had come on a 100-kilometer route, SPD secretary general andrea nahles said: "we have at least 50 percent of the distance behind us."Now the pace will be raised in the rough rounds. "The tension is rising," she said. Union and SPD to meet again on wednesday. Then a compromise is also to be found on the european banking union.

This thursday, the SPD party conference begins in leipzig; on friday, party leader gabriel is up for re-election. He cannot yet present the introduction of a minimum wage – the SPD’s core promise in the election campaign – to the delegates. Nahles announced that the rough round of talks would decide on this on tuesday of next week. The SPD does not want to enter into an alliance without a nationwide minimum wage of 8.50 euros per hour.

An overview of the state of play in the working groups on monday:

ENERGY: the reform of the eco-electricity requirement, which will swallow up almost 24 billion euros next year, is to be passed by the bundestag by summer 2014. Among other things, there are to be fewer requirements for new wind turbines at windy locations and only a small increase in the number of biogas plants. Expansion targets for wind farms in the north sea and baltic sea will be almost halved to 15,000 megawatts by 2030. The long-term expansion targets for eco-electricity up to 2030 are controversial.

EDUCATION: union opposes additional billions for more all-day schools. This was made clear on monday by their negotiator, the current education minister johanna wanka (CDU). During the election campaign, wanka and merkel had held out the prospect of federal funding for all-day schools and all-day childcare. The topic is now to be discussed in broad terms on wednesday.

RENT LIMIT: in tight housing markets, the new rent for a change of tenant may only be ten percent above the local level. For existing contracts, rents may increase by a maximum of 15 percent in four years; up to now, this has applied for three years. Those who build rental apartments are to receive tax incentives. A flat-rate heating allowance is to be introduced again for low-income earners.

ECONOMY: under pressure from party leaders, experts have slimmed down their billion-euro wish list. The demand for expansion of high-speed internet remains unchanged. Small and medium-sized companies to be rewarded for their research spending with tax breaks.

MAUT: the CSU is confident of victory. Dobrindt says toll on cars is guaranteed to come. SPD negotiator florian pronold countered this on ZDF television: "I can’t imagine that the CDU and SPD would agree to a concept that would increase the burden on every second car driver if they had previously said that it would only affect foreigners."This tuesday, the transport working group will continue its deliberations.

BANKS: resistance is growing among the SPD and CSU to the government’s pledge to the euro partners to provide direct aid from the ESM bailout fund to ailing banks. Merkel and acting finance minister wolfgang schauble, however, have their say in brussel. Union and SPD want to find a line on bank regulation by wednesday. Finance ministers to meet in brussel.

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