Immigration

Germany | Germany’s coalition government dissolved—legal and policy implications for skilled immigration

Summary

In a sudden turn of events, Germany’s “traffic light” coalition government, comprised of the Social Democrats (SPD), the Greens, and the Free Democratic Party (FDP), has officially disbanded. Tensions over various political issues, including immigration, economic reforms, and energy policies, ultimately led to the coalition’s breakdown.

This situation creates a new level of uncertainty regarding Germany’s immigration policies, especially with respect to the recent reforms designed to attract skilled labor.

The detail

What happened and the background

The traffic light coalition was initially formed to pursue progressive reforms, with a key focus on modernizing immigration, labor laws, and environmental policies. However, despite efforts to unify on these fronts, internal divisions, especially between the SPD and FDP, escalated over economic priorities and responses to recent global challenges. The coalition’s collapse opens the possibility of significant policy shifts, particularly if a conservative-led coalition gains power in a potential new election.

Legal proceedings and timeline for new elections

Following the coalition’s dissolution, the German Federal President, with input from Chancellor Olaf Scholz and other government leaders, must determine the next steps. As stipulated in the German Constitution, an interim government may operate temporarily, but new elections could be called if no viable coalition forms within a reasonable timeframe. More specifically, the Bundestag has 21 days to nominate a candidate for Chancellor. If no candidate secures a majority within this period, the President can either appoint a Chancellor that can control a majority or call for new elections. This process could last several months, leaving room for legal uncertainty and a delay in policy continuity.

The government has advised that business leaders and citizens maintain “calm and patience” as the political process unfolds. They have reassured the public that critical legislative functions will continue but warned that new legislative proposals could face delays.

Potential impact on skilled immigration and recent citizenship law amendments

If new elections result in a conservative-majority government, Germany’s approach to skilled immigration may shift. The outgoing coalition made significant strides in making Germany an attractive destination for skilled workers by relaxing visa requirements and streamlining processes for non-EU nationals, and the recent amendments to the Citizenship Act have allowed for faster naturalization.

However, a conservative government may prioritize stricter immigration controls, particularly with respect to non-EU nationals. In this case, previously liberalized pathways for skilled workers could become more restricted. Additionally, recent reforms to the Citizenship Act, aimed at dual citizenship and a faster path to naturalization, could face revision, potentially reinstating the more stringent policies that existed prior to 2023.

Impact on skilled immigration

In light of the current political climate and potential changes to immigration policy, we recommend that employers take the following steps to maintain workforce stability:

• Expedite hiring processes: Where possible, expedite applications and work authorization processes for international candidates. Acting quickly can mitigate potential impacts from regulatory changes.
• Monitor policy updates: Keep informed about policy changes regarding immigration and naturalization policy. New coalition priorities could impact existing processes, affecting everything from processing times to eligibility criteria for work permits and visas.
• Consider alternative pathways for urgent hires: Be prepared to explore alternative work visa options, such as intra-company transfers, which may be less affected by shifting immigration policies.
• Engage with immigration experts: Regularly consult with immigration specialists to evaluate the impact of emerging policy changes on your business operations and foreign workforce strategy.

How we can help

We are here to help you navigate potential immigration and policy changes in light of Germany’s political shift. Here’s how we can assist:

• Real-time updates: We’ll keep you informed of any regulatory changes affecting immigration processes, ensuring you stay prepared.
• Strategy and compliance reviews: We’ll assess your current immigration processes and identify adjustments to align with potential policy shifts.
• Expedited case support: For critical hires, our team can work to expedite visa and work permit applications and address processing delays where possible.
• Alternative pathways and contingency plans: We’ll explore other immigration pathways and develop contingency plans to minimize disruptions.
• Residency and citizenship applications: We recommend starting long-term residency or citizenship applications now. Our team will guide your foreign employees to help expedite these processes.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Mostafa Massoud
Partner, Rechtsanwalt (Lawyer)

Inga Mayer
Senior Manager, Rechtsanwältin (Lawyer)

Eva Witt
Manager, Rechtsanwältin (Lawyer)

Further information on Vialto Partners can be found here: www.vialtopartners.com

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