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Background Papers Coalition Agreement Between CDU, CSU and SPD Working together for Germany - with courage and compassion Germany faces tremendous challenges. Unemployment, public debt, demographic change and the pressure to adapt to globalisation all require major political efforts to safeguard welfare and prosperity for present and future generations. The CDU, CSU and SPD are facing up to these tasks. We have a shared responsibility to take our country forward. We will use our parliamentary majority to bring about structural reforms in Germany, encourage stakeholders to join in our endeavours, and boost people's confidence in our country's ability to master the challenges arising in future. Safeguarding prosperity - creating jobs Reducing unemployment is a core commitment of our government policy. We want to give more people the chance to work. Work does not just safeguard livelihoods; it empowers people to participate and have a stake in society. Getting more people back into jobs will also improve our country's financial health and relieve the burden on our social security systems. We plan to introduce targeted measures to kick-start our economy. Over the next four years, specific initiatives - with total funding of 25 billion euros - will be launched in five key areas with the aim of boosting innovation, investment, growth and employment and increasing consumer confidence. By raising the rate of degressive depreciation of capital goods, promoting energyefficient refurbishment of buildings, and providing tax breaks for the costs of craft services to private households and better support for household-related services, we will ensure that Germany achieves higher growth. We intend to assist jobseekers by further improving Germany's employment and recruitment services. We are especially committed to helping the young unemployed. Our "50 Plus Initiative" will improve the employment prospects of the over-50s. We will also improve the prospect of more jobs by further developing the rules on protection against dismissal, reducing non-wage labour costs and promoting business start-ups. We will ease the burden on SMEs by cutting red tape. Business successions will be facilitated by our reform of inheritance tax law. Pressing ahead with the development of Eastern Germany (Aufbau Ost) We will continue to drive forward the development programme for Eastern Germany and will help the new Länder to achieve self-sustaining economic growth. To this end, we will continue to promote a high level of investment in Eastern Germany in order to safeguard existing jobs and create new ones. Education, training and research will remain key priorities: the aim is to encourage innovation and improve Eastern Germany's competitiveness as a location for industry. Restoring the state's scope for action - consolidating public finance Germany's massive budget deficit and debt service are restricting the state's capacity to act. In order to place our public finances on a sound footing, a concerted effort must be made to consolidate the federal, Land and municipal budgets. We will: restructure, reform and invest, and Boosting confidence - guaranteeing social security In Germany, social security is mainly delivered through the social insurance funds. However, demographic change and the impacts of unemployment have greatly increased the burdens on the social insurance schemes. For people to feel secure in a rapidly changing world, they must be confident that the pensions, long-term care and health insurance funds can function effectively. Boosting this confidence is one of the tasks which the Grand Coalition has set itself. We will take the necessary reform steps to safeguard social security now and in future. This means a fair and equitable distribution of burdens between young and old, a higher retirement age to reflect increased life expectancy, and better support for private pension provision for young families in particular. The fundamental risks of life - sickness, old age, the need for long-term care, and unemployment - will continue to be covered by a social security system based on the principle of solidarity. Safeguarding the future - supporting families and children A society without children has no future. Not enough children are being born in Germany. We want to encourage families to have more children, and we want a stronger role for the family in society. The family is the arena where people learn to take responsibility for themselves and each other. The family is the bedrock of a liberal society. We want to support families and make their lives easier. We will provide tax breaks for childcare and introduce a parental allowance. To enable parents to achieve a better work-life balance, we will improve the range of childcare services and expand the provision of full-day care. The family embraces all the generations. The multigenerational family offers the chance to take responsibility for each other. We will develop models which enable several generations to live together and assume responsibility for each other. Education and science - the key to the future The brainpower of its people is the key to Germany's future. Education is a core issue, requiring serious and intensive efforts by the Federation, Länder and municipalities. Education is a prerequisite for participation in society. It is a central issue in the further development of our economy and our country as a whole. Our resource-poor country can only fulfil its future potential if it leads the field in scientific and technological progress. The state and the business community must therefore spend more on research and development. The private sector, the Federation and the Länder all have a role to play here. Our target - to reach R&D spending of 3% of gross domestic product - is achievable if all these stakeholders work together and support our integrated policies in this field. Practising sustainability - protecting the environment The CDU, CSU and SPD are firm advocates of sustainable development. An intact natural environment, clean air and water are prerequisites for a high quality of life. We view environmental protection as the common responsibility of the state, its citizens and the business community. Our policies are based on cooperation and individual responsibility on the part of business and citizens, market forces, and competition, combined with the requisite binding legislation and effective monitoring of compliance. We view an ambitious environmental policy as an integral element of a modern society, making a key contribution to global climate protection. This policy can become a driving force for: developing and marketing future-oriented technologies worldwide, We want to renew our country's federal structures: we intend to disentangle the competencies of the Federation and the Länder, clarify their responsibilities and strengthen the principle of subsidiarity. This will enhance the Federation's capacity to act and react while giving the Länder more policy-making scope. Starting in this electoral term, we want to place the financial relationship between the Federation and the Länder on a new footing. Guaranteeing security for citizens Security is the prerequisite for a life in freedom. In our system of government, the state has a responsibility to guarantee this security. Tolerance and openness are the hallmarks of a liberal society. There is no room for extremism, racism and anti-Semitism. The CDU, CSU and SPD believe in a state with the capacity to act, which takes its citizens' needs and concerns seriously, consistently enforces law and order, and protects citizens' rights and freedoms. In view of the threat posed by international terrorism, internal and external security is becoming increasingly interlinked. We are responding to this threat with consistent security policies. Germany - a responsible partner in Europe and the world The CDU, CSU and SPD are actively promoting Germany's role as an advocate of peaceful conflict resolution. Germany has strong partners in NATO to guarantee its external security. Together with our partners - also in the European Union and the international institutions - we are promoting democracy and human rights worldwide. We consider Europe and the United States of America to be members of the same community of values. For the coalition partners, strengthening the European Union's foreign policy role and deepening relations with the USA are therefore not conflicting but complementary objectives which we need to pursue in our country's national interests. Together with our partners, we will work to make the globalisation process equitable and combat poverty worldwide. Working together for Germany's future - exercising responsibility We want progress for our country. We can achieve this through our joint endeavours. Our government programme now sets the course for this process. We want to convince our citizens that it is worth accompanying us on this journey.
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