 Reports at the time indicated that the grand coalition would pursue a mix of policies, some of which differed from Merkel's political platform as leader of the opposition and candidate for Chancellor.The coalition's intent was to cut public spending whilst increasing VAT (from 16 to 19%), social insurance contributions and the top rate of income tax.When announcing the coalition agreement, Merkel stated that the main aim of her government would be to reduce unemployment, and that it was this issue on which her government would be judged.