German coalition hails talks on stalled Merz agenda

German Chancellor Friedrich Merz's governing coalition said Thursday that senior figures had held positive talks aimed at settling disputes that have stalled parts of its agenda.

Senior lawmakers from Merz's CDU/CSU bloc and the junior coalition partner, the SPD, said after a late Wednesday meeting that the talks took place in a “positive and constructive atmosphere”. They said the coalition wanted to swiftly finalise reform projects delayed for months.

The coalition has been divided over plans to overhaul social welfare programmes, including pensions and old age care. Proposed cuts are unpopular with the SPD's left wing.

The meeting came as the far-right Alternative for Germany has risen in national polls and Merz's popularity ratings remain at record lows. The lawmakers said “economic growth, job security, and social cohesion” would remain central to the agenda.

Tensions also include speculation that some conservatives may be open to working with the AfD, although Merz opposes that, and conservative criticism of the SPD for considering a local alliance with Die Linke in Berlin.