Merz and Söder rule out tax hikes despite SPD proposals

Newsworm
with
AFP
August 31, 2025
CDU leader Friedrich Merz and CSU’s Markus Söder firmly reject tax hikes, stressing coalition promises with the SPD. Despite SPD calls for higher taxes on the wealthy, Union leaders insist on reliability, predictability, and even push for tax cuts instead.
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Merz
The party leaders of the CDU and CSU, Friedrich Merz and Markus Söder, have once again rejected tax increases. Chancellor Merz referred to the agreements in the coalition agreement in a ZDF "Summer Interview" on Sunday. - AFP

The leaders of the CDU and CSU parties, Friedrich Merz and Markus Söder, have once again rejected tax increases. On Sunday, Chancellor Merz referred to the agreements in the coalition agreement between the Union and SPD during ZDF's “Sommerinterview” program. Bavarian Minister President Söder also insisted on compliance with the agreement.

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“We have a coalition agreement and we have agreed in this coalition agreement that taxes will not be increased,” Merz told ZDF. “And this coalition agreement is valid,” he clarified. The chancellor thus opposed proposals by SPD leader Lars Klingbeil and other Social Democrats who had spoken out in favor of higher taxes for the wealthy.

The SPD is aware of the agreements that have been made, Merz said. “The fact that the SPD has different ideas on this issue is just as acceptable as the fact that we have our own ideas on other issues,” he added.

Merz emphasized that there is no coalition dispute over this. “We are not looking for what divides us, we are looking for what allows us to govern responsibly together, and that is what we are doing,” he said in the interview, which will be broadcast on Sunday evening. Although there are some things in the government coalition that need to be “adjusted,” that is perfectly fine.

“No, we are not raising taxes now. We have to lower taxes,” Söder said in Düsseldorf's Handelsblatt newspaper. "Anyone who signs a coalition agreement should work through it instead of questioning everything after a few months. Predictability and reliability are crucial," the CSU leader continued, with a view to the SPD.

Söder also opposed the idea of individual CDU members of parliament trying to force the SPD to agree to social reforms by introducing a higher tax on the wealthy. That was out of the question for him, said the CSU leader.

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