German Court Upholds Solidarity Surcharge as Constitutional

The Federal Constitutional Court rules the surcharge remains justified due to ongoing reunification costs but mandates periodic reassessment.

The Federal Constitutional Court has declared the solidarity surcharge constitutional, rejecting a challenge from six former FDP politicians.
The court emphasized that ongoing financial burdens from German reunification justify the surcharge's continuation, citing expert findings on structural disparities persisting until at least 2030.
Introduced in 1995, the surcharge generates approximately €12-13 billion annually and is paid by around 10% of taxpayers, including high earners and corporations.
The ruling requires the federal government to periodically reassess whether the surcharge remains necessary to address reunification-related financial needs.
While the decision secures a significant revenue source for the federal budget, it also reignites political debates over tax equity and economic policy in Germany.