Overview
- The coalition leaders unveiled a 34‑point programme publicly on Thursday, July 2, 2026, following an overnight Koalitionsausschuss meeting in Berlin.
- A €10 billion‑per‑year income‑tax reform will target lower and middle incomes with biggest gains for families, take legal effect on 1 January 2027 and reach full intended impact by 2028.
- The plan raises top rates to 45% from €250,000 and 47% from €280,000 to help finance the relief while keeping the overall package budget‑neutral through measures signed in the paper.
- Health and labour rules tighten: telephone sick notes will be abolished and employees must present a sick‑note from the first day of illness, a change critics warn will raise pressure on primary‑care appointments.
- Key parts still need laws and Bundesrat sign‑off, including pension reforms pledged for passage by end‑2026, and offsets such as lower handworker deductions, a higher Minijob tax rate and planned KfW transfers will affect public and state finances.