Overview
- The leaders of the CDU, CSU and SPD adopted a 34-point measures package at a July 2 Koalitionsausschuss press conference that bundles tax, labour and bureaucracy changes.
- The government says the package will deliver about €10 billion in measures and leave a typical household with up to €600 more per year when fully phased in by 2028.
- To pay for the relief, the plan raises top income rates so 45 percent applies from €250,000 and 47 percent from €280,000, while explicitly not increasing inheritance or wealth taxes.
- The package ends telephone sick notes and requires a medical certificate from day one, a move family doctors and medical associations say will overload GP practices and add bureaucracy.
- Labour changes include extending fixed-term contracts without objective reasons to 48 months with up to six renewals, drawing strong criticism from unions as the bill moves to parliamentary drafting and debate.