The polls predict a clear victory for Angela Merkel’s CDU/CSU but several government coalition scenarios are possible. The parties that could form a coalition (CDU/CSU, SPD, FDP and/or Greens), while sharing many essential views, do diverge significantly on a number of fiscal and European topics.

Regarding the budget, these parties are in favour of tax cuts, but they differ as to how much and who should benefit. Their public spending priorities are also different (infrastructures, social areas and/or defence). Importantly, the CDU/CSU wants to strengthen public infrastructures more by lifting administrative obstacles than by spending more at the federal level.