Coalition Deadlock Over Tax and Social Security Reforms

Tensions rise within Germany's coalition government as the FDP and Greens clash over tax relief and social insurance contributions.

Finance Minister Christian Lindner's proposal to increase the tax-free income threshold faces opposition from the Greens, who argue it benefits higher earners disproportionately.
The Greens demand Lindner drop his resistance to raising the income cap for social security contributions, a move aimed at higher earners.
The SPD has introduced a plan to increase taxes on the wealthiest 1% to fund relief for 95% of taxpayers, alongside reintroducing a wealth tax.
The coalition's internal disputes have stalled progress on key legislative measures, including the adjustment of tax brackets to counteract inflation.
The proposed reforms are part of broader strategies as parties position themselves ahead of the upcoming Bundestag elections.