1. Overview of the coalition committee findings
Reports from the coalition committee present a broadly consistent picture: after lengthy negotiations the Union and SPD agreed on a reform package that focuses on income tax changes, a tougher or earlier-reaching wealth tax (often called a “Reichensteuer”), stricter rules for sick leave certification, and extended Sunday opening hours for bakeries. While the general direction is clear, different media accounts vary on some details.
2. Income tax reform and the proposed wealth tax
The reform package places an emphasis on income tax relief for small and medium incomes while increasing pressure on high earners. The term “wealth tax” or “Reichensteuer” has been used to describe measures that would raise taxes on higher incomes or wealth in order to fund relief elsewhere in the tax system.
Key proposals and differing reports
Different sources describe the wealth tax proposals in slightly different ways. Some reports mention a split structure with a 45 percent rate starting from €250,000 and a 47 percent rate from €280,000. Other accounts emphasize that the exact design and thresholds were still part of ongoing political negotiations and not yet finalised.
- Income tax relief targeted at small and medium incomes
- Proposals for a tougher wealth tax on the highest incomes
- Reported split-rate ideas (e.g., 45% from €250,000; 47% from €280,000) but not confirmed
Who benefits and who is affected
People with small and medium incomes are expected to see tax relief, improving take-home pay for many households. At the same time, higher earners would face increased taxation under the proposed wealth tax measures, which is intended to raise revenue and address fairness concerns. The final balance will depend on the exact rates, thresholds, and any accompanying exemptions.
3. Stricter rules for sick leave
The committee also agreed on stricter rules regarding sick leave certification. Reports say the government wants tougher or earlier-reaching rules for medical certificates and sick notes, aiming to reduce abuse and improve clarity around absences.
Possible effects for employees and employers
- Employers may see fewer unexplained absences if verification rules are tightened.
- Employees could face clearer requirements for when and how to provide medical certificates.
- Implementation could involve administrative changes and stronger oversight to ensure compliance.
4. Longer Sunday opening hours for bakeries
Part of the package includes more permissive rules for Sunday opening hours specifically for bakeries. The idea is to allow bakeries longer trading times on Sundays to increase convenience for customers and give bakeries greater flexibility.
- Consumers may benefit from more options and longer access to fresh goods on Sundays.
- Bakeries could see increased sales opportunities and scheduling flexibility.
- The change raises questions about staffing, compensation for Sunday work, and the balance with traditional Sunday rest rules.
5. Financing, disagreements and next steps
Reports list several financing instruments that could fund the package. Commonly mentioned options include higher taxation of high incomes, cuts to subsidies, savings in the federal budget, and a stronger tobacco tax. These measures are intended to balance the revenue needs created by new relief measures and reforms.
What to watch next
- Final political negotiations to agree exact rates, thresholds and implementation details.
- Legislative steps required to turn committee agreements into law.
- Impact assessments and public debate about fairness, revenue, and effects on workers and small businesses.
There are differences in reporting about exact details and the final shape of measures. Some numbers and proposals appeared in media accounts, while other sources stressed that final decisions remained part of ongoing political negotiations. These developments were reported in 2026.
