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POLITICS

What the new conservative-led coalition in Hesse could mean for residents

The CDU and SPD have agreed on a number of plans for Frankfurt and the state of Hesse, with education, migration and subsidies for house buyers in the foreground.

Nancy Faeser Boris Rhein
SPD candidate and Interior Minister Nancy Faeser and CDU candidate Boris Rhein in Wiesbaden, Hesse during the election campaign. Photo: picture alliance/dpa | Boris Roessler

After the Christian Democratic Union (CDU) party swept to a clear victory in the October 8th elections in Hesse, the centre-right party has been busily setting out its agenda for a new coalition with the centre-left Social Democrats (SPD).

With 34.6 percent of the vote, the conservatives are twice as a strong as their junior coalition partner, which landed in third place on 15.1 percent. The far-right AfD secured second place with an 18.4 percent vote share, but the so-called political “firewall” means that none of the mainstream parties are willing to work with them in a coalition.

Nevertheless, the coalition agreement – which was finalised on Thursday – marks a distinct shift away from the more socially progressive and climate-conscious days of the former CDU/Greens coalition.

Instead, the new ‘GroKo’ (grand coalition of the CDU and SPD) has described its style of government as both ‘Christian’ and ‘socially-minded’. This appears to mean opening the purse strings for things like education and housing while taking a tough line on crime and irregular migration.

Here are the key plans on the agenda:

Subsidies for property buyers 

A key pledge in the CDU’s coalition plans was the distribution of so-called Hessengeld, which will subsidise the purchase of a new home for first-time buyers.

Under the plans, would-be homeowners will get a reduction in their property tax of up to €10,000 per adult and €5,000 per child. With property tax set at six percent in Hesse, this could equate to as much as €30,000 for a two-adult, two-child household buying a €500,000 home.

The coalition also wants to make the processes of obtaining land and planning permission easier for developers, to ensure that more homes get built more quickly.

READ ALSO: ‘Disastrous results’: Germany in shock after elections in Bavaria and Hesse

Compulsory Kita attendance

An age-old battle over comprehensive schools – or Gesamtschulen in German – has been put to one side, meaning Hesse will continue to have a segregated schooling system. 

Instead, the new coalition plans to make the final year of nursery school compulsory. This is largely to correct a lack of German language skills among first-year pupils in primary schools. 

Another change in the schooling system will be the legal entitlement to all-day care, which has been slow to roll out in the state of Hesse. 

Children play a colouring game at a German 'Sprach Kita'.

Children play a colouring game at a German Kita. Photo: picture alliance / dpa | Jens Büttner

More police, doctors and teachers

To make Hesse a “strong state”, the new Grand Coalition will aim to recruit more police officers and expand the use of CCTV monitoring in public spaces, with artificial intelligence and facial recognition also playing a role.

In addition, the state government will increase its targets for hiring doctors in the state and ensure more places to study medicine are available at its universities.

With the state struggling with teachers shortages in its schools – just like most states in Germany – hiring more teachers is also a key goal. 

Expansion of the motorways

Seven of thirty motorway expansion projects pitched by Transport Minister Volker Wissing (FDP) and rejected by the current state transport minister are expected to be revisited under the new CDU/SPD coalition.

This could mean that the controversial widening of the A5 motorway outside Frankfurt could be green-lit after all.

Solar panels and climate hardship funds

Though climate protection will seemingly play far less of a role in this coalition, the agreement does mention plans to promote solar energy with 100,000 new solar installations on roofs. The coalition also wants the state to be climate neutral by 2045. 

Residents of Hesse will also get financial assistance if they’re at risk of hardship due to the obligation to exchange their old gas or oil heating systems.

On the wildlife front, hunters will be given more rights in the state – including the ability to hunt wolves. 

READ ALSO: German government scraps exemption for over-80s in controversial heating law

No gender-neutral speech in schools and unis

One of the more controversial plans being pursued by the new government is the proposal to ban the use of gender-neutral speech in schools, universities, and on the radio.

With the German language usually forcing speakers to mention a specific gender when talking about professions – usually male by default – it has recently become more common for people to try and include women with various tactics like the ‘gender asterisk’ or Gendersternchen.

An advertise for a hair stylist in gender neutral German

An advert for a hair stylist in gender neutral German. Photo: picture alliance/dpa | Jens Kalaene

Proponents say this makes speech more inclusive and avoids giving the impression that doctors, for example, are all men.

However, some of the tactics – and particularly the use of punctuation like the asterisk in written German – remain controversial and would be subject to a ban under the coalition’s plans. 

That said, they are likely to face fierce opposition from journalism associations in Hesse and may be standing on rocky legal ground. 

Gendern: Why Germany still gets fired up about gender-neutral language

Deportations and payment cards for migrants

With the far-right AfD landing in second place in the last elections, tackling irregular migration and taking a tough line on asylum seekers is a central issue in the coalition agreement.

Plans include more consistent deportations, an increase in the number of contact points for processing migrants and pushing for more countries on the ‘safe land of origin’ list where asylum seekers can be taken to. 

The coalition also want to put an end to cash payments for asylum seekers and instead give them payment cards to prevent them from sending money back home.

In addition, integration courses and German language courses will be obligatory in the future. 

State elections: Why did the AfD do so well in Bavaria and Hesse?

What happens next?

The coalition agreement will get voted on by each of the respective parties and, if approved, ministerial posts will be doled out next year.

As the largest party, the CDU is expected to get eight posts while the SPD will take three. 

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

READ ALSO: Can Germany revive its struggling economy?

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

READ ALSO: Which German companies are planning to cut jobs?

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.

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