Mox habebimus regnum novum

In the good old days, a coalition between the Christian Democrats (CDU/CSU) and the Social Democrats (SPD) was called a GroKo because both parties together, supporting a black-red government, had majorities of up to 80% in the German Bundestag (parliament).

Coccinella septempunctata crawling (©Miltoncontact)

In the recent federal election, the voters reduced the CDU/CSU to 208 seats and the SPD to 120 seats. The formerly dominating parties agreed to form a coalition, but their so-called Ladybug Coalition merely holds 52% of the seats in the new Bundestag of 620.

 
The two coalition partners completed their 146-page contract in less than two months. They named the paper “Responsibility for Germany,” which should send “a very strong and clear signal to the citizens of our country and to our partners in the European Union.”

The problems to be dealt with in the next four years - provided the coalition lasts this long - are numerous:

1. Economic stability and competitiveness

- The German economy has been stagnating for over two years. Industry, particularly the automotive sector, has structural problems and is experiencing a decline. Causes include high energy prices, a shortage of skilled workers, and excessive bureaucracy. On top of this looms the potentially catastrophic impact of new US tariffs and a trade war.

- Inflation and cost of living: Inflation and the cost of living remain a dominant topic, although with the euro, it is a European problem watched by the European Central Bank.

2. Migration and integration

- Although the number of asylum applications has declined in the past year, the numbers are still high, burdening local authorities. The majority of Germans demand efficient action on migration policy.

- The integration of migrants into society and the job market is a long-term challenge, particularly regarding language and education. However, from a medium-term perspective, the stressed German labor market will profit.

3. Social policy and demographic change

- As the baby boomer generation enters retirement, the financial pressure on pension and care systems is increasing. Around 58,000 additional carers will be needed by 2025.

- As in most countries, the gap between rich and poor is growing. Reforms are needed to ensure a more balanced distribution of income and resources.

4. Housing market and infrastructure

- There is an estimated shortage of 700,000 homes in Germany. Affordable housing is particularly scarce in large cities.

- The investment backlog in infrastructure affects areas such as digitalization, transport, and energy.

5. Education and skilled workers

- The education system needs comprehensive reforms to ensure equal opportunities and meet the demands of a future labor market.

- Demographic change is leading to a decline in the potential workforce. Strategies to secure skilled workers, including targeted immigration, are necessary.

6. Climate protection and energy transition

- Despite international commitments, climate protection has lost priority in the public perception. Nevertheless, measures to reduce emissions and promote renewable energies must and will continue.

Securing an affordable and sustainable energy supply—nuclear and coal power are already or will be phased out—remains a key task, especially given geopolitical tensions.

7. Trust in state institutions

- 70% of citizens believe the state is overburdened, particularly regarding refugee policy, education, and internal security.

- Bureaucracy must be reduced, and administration modernization is a prerequisite for regaining trust in state institutions.

In Germany, like in many countries, the ladybug is associated with luck, love, and fertility.

Let it be so.

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