Several members of the CDU and CSU in the Bundestag are pushing for a complete counteraction of “cold progression” in 2027 and 2028, demanding that the existing tax relief plans be more than doubled.
According to CSU financial policy expert Florian Dorn speaking to the newspaper Bild, the tax relief needs to be at least twice as high as currently projected to offset the loss of purchasing power during those two years-requiring a net amount exceeding 15 billion euros. The currently decided-upon reliefs by the federal cabinet total approximately seven billion euros net.
Dorn stressed that achieving higher relief than 15 billion euros is necessary to stimulate growth in Germany. He suggested that this should be balanced by cuts in state expenditure, noting that reducing financial aid alone could potentially save up to five billion euros annually.
CDU MPs Melanie Bernstein and Saskia Ludwig also support resolving the issue of cold progression. Bernstein stated that even the current governing coalition (Ampel) managed to fully compensate for cold progression, arguing that the CDU government should not fail in this regard. Ludwig further warned that she would reject the tax law in the Bundestag unless the cold progression was entirely eliminated. She told the Chancellor as early as November 2025 that she would not approve any legislative proposals that place further burdens on “high earners.”
Christian von Stetten, the chairman of the Small to Medium-sized Enterprises (PKM) parliamentary group within the CDU/CSU faction, announced that the PKM plans to closely examine the legislated tax law. Deferring his earlier statement, von Stetten confirmed the PKM’s decision from May 20th, which sets expectations for the government. The PKM explicitly objects to measures that impose new burdens on income tax as a way of funding the planned reductions.
