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Markus Söder calls for bold tax and labor reforms to revive Germany's economy

A radical overhaul or slow decline? Söder's Agenda 2030 plan targets middle-class tax breaks, family businesses, and productivity—but can it pass in an election year?

, and Administrator

2026 April 25 . 2:02 PM

1 min read

The image shows a graph on a white background with text that reads "The Benefits of Increased... — The image shows a graph on a white background with text that reads "The Benefits of Increased Productivity Over the Last 35 Years Have Not Gone to the Middle Class". The graph illustrates the increase in productivity over the last 35 years, indicating that the benefits of increased productivity have not gone to the middle class.

Markus Söder calls for bold tax and labor reforms to revive Germany's economy

Bavaria's Minister-President and CSU leader Markus Söder has called for sweeping tax and social reforms, arguing that Germany needs "a new Agenda 2010—an Agenda 2030, so to speak." In an interview with Mediengruppe Bayern (Wednesday edition), Söder pointed to the landmark Agenda 2010 reforms introduced under then-Chancellor Gerhard Schröder (SPD), stating: "The last major social reforms in this country were launched under Gerhard Schröder. Today, we urgently need a similar package of measures."

Söder also pushed for comprehensive tax reform, proposing cuts to income tax for middle earners, an accelerated corporate tax overhaul, and regional adjustments to inheritance tax to support small and medium-sized businesses and family-owned firms.

At the same time, he advocated for increasing working hours to boost productivity. "More work means more output—this year, two public holidays fall on weekends, which already gives the economy a noticeable lift," he said. "Asking for just one extra hour of work per week—twelve minutes more each working day—isn't unreasonable. That alone could raise economic growth by nearly three percent." Söder stressed the need for swift action, warning that reforms must not be delayed by state elections. "We can't allow every regional vote to stall the urgent debates and changes this country needs," he said.