BERLIN, March 8 (Xinhua) -- Germany's conservative Union bloc of CDU and CSU and the Social Democratic Party (SPD) on Saturday announced their intention to enter formal coalition negotiations, following the conclusion of exploratory talks.

The exploratory talks, which lasted for over a week after the federal election on Feb. 23, produced a paper outlining the basis for the two parties to form a coalition government.

CDU leader and likely the next Chancellor Friedrich Merz said at a press conference that agreements had been reached in a number of key policy areas including migration, finance, and economic issues.

Regarding migration, the parties agreed on the possibility of rejecting asylum seekers at land borders, as well as strengthened border controls.

They also agreed to reform the social benefits system for the unemployed.

According to the announcements, the two parties would also focus on reducing energy costs to boost the country's economy.

Earlier this week, the CDU/CSU and the SPD announced an agreement on a 500 billion euro (542 billion U.S. dollars) package to provide infrastructure investments, as well as a plan to exempt defense spending from constitutionally enshrined debt brake. Enditem

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