Chancellor Merz had already announced on Wednesday afternoon that the coalition would conclude discussions in the evening and present the results on Thursday. “I expect that we will really take a big step forward in modernizing our country,” he said. The issue of competitiveness will be given priority. Households must be able to consume and industry must be able to invest. “That’s kind of the framework we’re working within, and I’m confident we’ll do a good job with it,” he said.
Merz named the dismantling of bureaucracy, modernization of the state and digitalization as topics of consultation. “We will also talk about the topic of tax legislation and the labor market.”
What was controversial before the coalition committee was the possibility of significant relief for small and medium-income earners – and, above all, what possible counter-funding for such a move should look like. The SPD wanted to place more of the burden on the rich and high earners. Leading Union politicians have said they are ready to increase the rate of the so-called tax on the rich. However, they rejected increases in the top tax rate and inheritance tax. Business associations also warn against this.
Merz leaves the office
Source: Fabian Sommer/dpa.