German lawmakers block tax hikes, sparking SPD backlash over budget talks
A group of 166 Union lawmakers has firmly rejected proposals to raise income or inheritance taxes. The Parliamentary Group for Small and Medium-Sized Enterprises also opposed changes to Germany’s debt brake. Their stance has sparked a sharp response from the Social Democratic Party (SPD). The group adopted a resolution making clear that planned tax relief for low- and middle-income earners must not come at the expense of higher earners. They ruled out any new financial burdens on wealthier taxpayers to fund the cuts.
Meanwhile, Chancellor Friedrich Merz (CDU) had earlier called for restraint in public disputes. During a meeting with the SPD’s parliamentary group, he urged both sides to avoid drawing rigid red lines against each other. The SPD reacted with surprise to the Union faction’s firm position. Adis Ahmetovic, the SPD’s foreign policy spokesperson, described the move as 'unwise'. He suggested it was not only aimed at provoking the SPD but also undermined the authority of the Union’s own chancellor.
The resolution sets a clear boundary for upcoming budget talks. Tax relief for lower earners will now have to be funded without increasing the load on high-income households. The SPD’s criticism signals potential friction in future negotiations.
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