Germany's coalition fractures as Söder and Merz clash over tax reforms

A public spat between two key leaders reveals deep divisions in Berlin. Will tax reforms tear the coalition apart—or force a fragile compromise?

, and Administrator

2026 April 13 . 8:02 AM

1 min read

The image shows an old map of Germany from the 19th century, depicting the political divisions of... — The image shows an old map of Germany from the 19th century, depicting the political divisions of the region. The map is printed on a paper with text at the top and bottom, providing further details about the region's political divisions.

Germany's coalition fractures as Söder and Merz clash over tax reforms

After Chancellor Friedrich Merz called for greater unity within the governing coalition, CSU leader Markus Söder reminded the SPD of the differing power dynamics in the alliance. Speaking as a guest at the CDU party conference in Stuttgart, the Bavarian state premier said he found it "fine" if the chancellor adopted an even "more conciliatory" tone toward the SPD to keep the coalition together. But, he added, "Let's be clear: Who won the election? Who is number one? It's the Union, not the SPD."

In this context, Söder explicitly criticized the SPD's positions on tax policy, particularly its stance on inheritance tax, where he said he was unwilling to compromise. "We need to be clear about what we want," he demanded.

On Friday, Merz had urged the coalition partners—the Union and the SPD—to adopt a more constructive approach to governing. "We must move beyond the situation where one coalition partner puts forward proposals only for the other to ritualistically reject them," he said. "Both sides need to break out of that pattern."

Following Söder's speech, CDU leader Merz praised it as "inspiring" and a "strong assessment of where we stand."