Draft coalition agreement: fiscal policy changes

With an agreement entitled “A new beginning for Europe, a new dynamic for Germany, a new solidarity for our country”, the CDU, CSU and SPD have set out their plans for the current legislative period. SPD members will begin voting on the draft agreement on 20 February. The contract was signed on March 12th 2018.

One of the main focuses of the policies contained within the agreement on both a European and national level is achieving “fairness”. This has already led to some recent changes in fiscal policy, for example through the introduction of licensing limits to combat unfair tax competition, and will continue to do so through the objectives listed in the coalition agreement. This particularly concerns the international fight against tax dumping, tax fraud, tax avoidance and money laundering. The draft agreement states that the government’s “financial flexibility” should be used to create policies that are responsible and socially balanced. With regard to the taxation of individual persons in particular, certain measures are intended to provide relief for those on low incomes and to strengthen the family unit. As well as the aspects discussed below, fiscal changes are expected to impact other areas covered in the draft coalition agreement within the upcoming legislative period. This includes the field of digitalisation (e.g. by reducing bureaucracy and through eGovernment) and in providing support for start-ups through financial incentives to mobilise venture capital.

Cornerstones of grand coalition’s fiscal policy

These areas will play a particularly important role:


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Income tax

There are no plans to increase the tax burden on citizens, and the coalition also intends to...

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Solidarity tax

People on lower and average incomes will be exempted from solidarity tax, thereby reducing their...

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The agreement promises both simplification and tightening of the existing laws with regard to...

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Other topics

Learn more about the following topics: Tax fairness, Tax benefits for research and development,...

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Experten-Sedcard: Geplanter Koalitionsvertrag

136 Tage nach der Bundestagswahl haben sich Union und SPD auf den Entwurf eines Koalitionsvertrags verständigt. 177 Seiten umfasst das Regierungsprogramm der Großen Koalition für die aktuelle Legislaturperiode. Darin: zahlreiche Entscheidungen, die die Steuerpolitik betreffen. Wichtige Rollen werden dabei die Bereiche Einkommenssteuer, Körperschaftsteuer, Gewerbesteuer, Umsatzsteuer und der Solidaritätszuschlag spielen.

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