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German Government Split Over 10% Digital Tax as Legislation Stalls

Clashes over fairness versus trade risks have left the plan under review pending EU consensus alongside US negotiations.

Katherina Reiche
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Overview

  • Legislative progress on the proposed 10 percent levy has stalled amid deep divisions between key ministries.
  • Economic Minister Katherina Reiche and NRW Finance Minister Marcus Optendrenk reject the tax, warning it would harm competitiveness and burden consumers.
  • Culture Minister Wolfram Weimer maintains support for a “platform-soli,” arguing it would curb tech giants’ tax avoidance and fund media diversity.
  • CDU parliamentary leader Jens Spahn ties any decision to the outcome of EU-US trade talks to prevent escalation and retaliatory measures.
  • Government spokespeople clarify that Weimer’s draft was never agreed upon and the coalition pact only mandates an assessment, not immediate enactment.