Bundesfinanzminister Lars Klingbeil (SPD) announced a comprehensive reform package for the current fiscal year aimed at closing a looming deficit of several hundred billion euros in the national budget. He introduced a reform of the inheritance tax as part of the plan.
“Klingbeil told the FAZ that the reforms will demand some sacrifice from everyone” he said. “Our goal is to make decisions this year that will shape the remainder of the legislative term”. He described the course as a “strict consolidation” with “very far‑reaching measures”. For 2028 alone, a gap of more than 60 billion euros must be closed.
He clarified that, aside from cuts-such as reductions in subsidies-the inheritance tax will also be addressed. “I believe the inheritance tax can be part of a comprehensive package” Klingbeil explained. He criticized the current system as unfair: “There are major injustices where smaller inheritances are heavily taxed while large multi‑million inheritances are hardly affected. We want to eliminate these inequities”. He emphasized that a major reform package will not succeed if everyone in society has to contribute, except those with large fortunes or high incomes.
Economists have recently labeled a VAT increase as almost inevitable given the large budget gaps. When asked whether such a rise could be ruled out, Klingbeil replied that “the coalition agreement does not include a VAT increase”.
