Overview
- The OECD, in a report released Thursday, urged Germany to reform joint spousal taxation, limit mini-jobs to students, and scale back early-retirement perks to raise work hours.
- It said high taxes on wages blunt the payoff from extra work, leaving many second earners, often women, in short-hour jobs where added hours bring little extra take-home pay.
- The study flagged weak basic skills and advised an obligatory high‑quality preschool year, longer primary school days, and stronger adult retraining with clear quality standards.
- It recommended lowering income taxes while shifting revenue toward property and consumption taxes to ease the burden on work and support higher labor supply.
- The report pressed for faster planning and permits to clear energy, digital, and transport backlogs, noted recent steps on renewable approvals, budget rules, and skilled visas, and aligned with Klingbeil’s push that now faces coalition tests.