After weeks of intense negotiations, Germany’s next government is finally taking shape. The CDU, CSU, and SPD have reached an agreement on a new coalition pact, with CDU leader Friedrich Merz set to become the next Chancellor. The parties promise stability, but also a series of significant changes that will affect expats, migrants, and international workers in Germany.

The coalition agreement places a strong emphasis on boosting Germany’s sluggish economy. Measures include planned corporate tax reductions starting in 2028, relaxed depreciation rules for investments until 2027, and a simplification of bureaucratic processes — including the replacement of Germany’s national supply chain law with a more flexible EU directive. On migration, the tone is notably stricter: asylum seekers may now face rejections directly at the EU border in cooperation with neighboring countries. Family reunification for refugees with limited protection status will be paused for two years. Additionally, the fast-track path to citizenship after three years for highly integrated immigrants will be reversed. However, the standard naturalization period of five years remains, and dual citizenship will continue to be permitted.

Addressing the skilled labor shortage, the coalition focuses primarily on domestic talent development. Investments will be made in early education and student support programs like BAföG. Yet notably, there are no new initiatives to attract international skilled workers or to streamline work visa procedures.

Other key points in the agreement include raising the minimum wage to €15 per hour, easing working time regulations toward a more flexible weekly framework, and preserving the €49 Deutschlandticket for public transport beyond 2025, although price adjustments are expected from 2029.