The parliamentary group for the Union is increasing pressure on SPD Federal Minister for Labor, Bärbel Bas, to advance promised reforms concerning the labor market and pensions. During internal meetings on Thursday, the Union leadership stated they would withhold their approval of the income tax reform proposed by SPD Finance Minister Lars Klingbeil until Minister Bas submits the relevant legal drafts, according to information provided by the “Handelsblatt”.
Union officials emphasized that it was unacceptable for measures requested by the SPD to be immediately implemented while reforms pushed through by the Union were delayed. This view was held uniformly by the party’s top leadership.
While a broad agreement on several reforms was reached during the coalition meeting earlier in July, the Union insists that the SPD must also uphold its commitments. The income tax reform, which includes increasing the tax on the wealthiest earners (dubbed the “tax on the rich”), is scheduled for its first reading in the Bundestag on October 8, 2026. Although the SPD views this tax increase as a major negotiation victory, the Union stated that its willingness to accept this measure was contingent on the SPD making progress on pension and labor market policies. Currently, those essential laws remain unscheduled. Union sources stressed that the reforms agreed upon in early July constituted a linked package solution, meaning they are politically interconnected.
