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SPD Rules Out Welfare Cuts, Pivots to Targeted Tax and Immigration Reforms

Leaders say upcoming decisions will shape inheritance-tax plans.

Overview

  • The SPD leadership used its Bundestag caucus to reject reducing social benefits as a path to economic growth.
  • Party figures emphasized a growth strategy centered on innovation, education and research, saying reforms should work with workers rather than against them.
  • The caucus paper backs inheritance-tax changes that spare a primary family home, increase taxation on large estates and business inheritances, and protect jobs during company successions.
  • Leaders said the coalition will take up the inheritance-tax issue after a long-anticipated Federal Constitutional Court ruling, with the SPD preparing to table its own proposal.
  • The SPD highlighted acute skilled-labor gaps and proposed easing immigration rules, including a right to stay for well-integrated workers with jobs, while awaiting guidance from the Social State Commission this month and the Pensions Commission mid-year.