Coalition Rift Emerges Over €15 Minimum Wage Promise

Germany’s incoming coalition government, formed by CDU/CSU and SPD, has been shaken by a public disagreement between party leaders over one of the most sensitive issues in the coalition agreement: the future of the minimum wage. As SPD members prepare to vote on the finalized agreement, CDU leader and incoming chancellor Friedrich Merz has firmly rejected SPD claims that a rise to €15 per hour is guaranteed in the coming year.

Speaking just weeks before assuming office, Merz contradicted SPD chairman Lars Klingbeil, who had stated that the coalition agreement would bring about a rise in the minimum wage to €15 by 2026. According to Merz, this interpretation is misleading. “That was not what we agreed upon,” Merz stated in interviews with national media. He clarified that the coalition merely expressed the expectation that the independent Minimum Wage Commission might consider such an increase — but no legal obligation or timeline was set.

No Legal Mechanism for Immediate Wage Hike

Merz emphasized that the wage commission must remain autonomous in setting wage levels. “There will be no automatic legal increase,” he said. The commission, not the government, determines the official minimum wage based on economic data, labor market conditions, and employer-employee negotiations. As it stands, the minimum wage in Germany is €12.82 per hour.

While the coalition agreement reportedly includes the €15 figure as an aspirational target, it does not commit the government to enforcing this figure by law. Merz reiterated that the wage may reach €15 by 2026 or 2027, but only through the commission’s own process. The CDU leader’s firm stance is viewed by political analysts as an early exercise of his authority — and a clear sign that internal disagreements in the new coalition are already surfacing.

SPD Faces Pressure Before Internal Vote

The disagreement comes at a sensitive time for the SPD, which must secure member approval of the coalition deal. The internal vote begins this week, with results expected at the end of April. SPD leaders had pointed to the €15 wage as a major social policy victory, aiming to win support from party members.

However, Merz’s public correction has cast doubt on the credibility of those claims. The SPD’s framing of the agreement could now face backlash from within its own ranks, especially from members who expected firm commitments on social equity and income support measures.

The minimum wage issue was already one of the most politically symbolic elements in the agreement, and Merz’s intervention suggests it could become one of the first major conflicts between the coalition partners.

Tax Relief for Middle Incomes Also Uncertain

In addition to the wage debate, Merz also poured cold water on another key SPD promise: income tax cuts for low and middle earners. While the SPD had suggested these were part of the coalition’s economic relief plan, Merz said such tax reductions remain “open” and would only be possible if public finances allow it.

“There was a disagreement, and therefore we left it out of the final agreement,” Merz explained. He acknowledged concerns that many workers might end up with less take-home pay due to rising social contributions and inflation. “That concern is not unjustified from today’s perspective,” he said, adding that the government would need to act during its term to address the issue.

Merz maintained that any tax relief must be financially sustainable and would depend on the state of the federal budget over the next several years.

Political Messaging Versus Legal Commitments

Observers say the public divergence between CDU and SPD over both minimum wage and tax policy reflects deeper tensions within the coalition. It also illustrates a growing gap between political messaging used to secure public and party support, and the legal or institutional limitations of governance.

While the SPD aims to present the coalition agreement as a progressive step forward, the CDU is emphasizing fiscal responsibility and the need for institutional independence — especially concerning wage-setting procedures.

Whether these early disputes can be resolved without undermining trust between coalition partners remains to be seen. What is already clear, however, is that the Merz-led government may be more cautious than its partners had hoped when it comes to turning campaign promises into binding policy.