Friedrich Merz: Solidarity surcharge should end in four years!
Friedrich Merz: Solidarity surcharge should end in four years!
Berlin, Deutschland - On June 7, 2025, Chancellor Friedrich Merz (CDU) presented a comprehensive concept for the abolition of the solidarity surcharge in front of family entrepreneurs in Berlin within four years. This measure, according to Merz, is intended to significantly relieve small and medium -sized companies that pay income tax. The plans come at a time when it is stipulated in the coalition agreement between the Union and the SPD that the solidarity surcharge remains during the reign.
Merz further explained that since 2021 only better earning, companies and investors have been asked to pay. Around 90 percent of taxpayers are exempt from payment. In this context, the request of the Chancellor is particularly controversial after an early abolition, especially since the Federal Constitutional Court in March dismissed a complaint against the solidarity surcharge and confirmed its constitutional compliance.
order situation for companies
As part of his statements, Merz emphasized that the planned abolition would bring a sustainable relief for the economy. In addition, he plans a rapid reduction in electricity prices, which he would like to discuss in discussions with Finance Minister Lars Klingbeil (SPD) for implementation in the 2025 budget. This is part of a larger plan to reduce bureaucratic loads for companies to increase competitiveness.Merz also criticized the excessive national implementation of EU guidelines in Germany, named the supply chain law as an example and called on to simplify bureaucratic procedures so as not to burden companies.
historical background of the solidarity surcharge
The solidarity surcharge was originally introduced in 1991 as a temporary delivery for the catching of the costs of German reunification and unlimited in 1995. It was initially 7.5 percent and was reduced to 5.5 percent in 1998. Although the surcharge is now only paid by a small part of the population, there is still a federal financial requirement, which makes a regular review of the surcharge, according to the Federal Constitutional Court.
The discussion about the financing and social staggering of the solidarity surcharge remains currently, while Merz demands concrete steps to relieve companies and citizens. The Chancellor faces the challenge of politically enforcing the plans to abolish the contract, despite the existing contractual agreements with the SPD.
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| Ort | Berlin, Deutschland |
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