Mathias Middelberg

Germany's coalition races to agree income tax reform as SPD pushes relief for middle earners and CDU warns against pure redistribution

With two days until a decisive coalition committee meeting, Finance Minister Klingbeil has tabled two competing proposals for an income tax overhaul. The SPD wants low and middle earners to gain at least 520 euros a year, while the CDU insists any cuts must be fully funded by spending reductions.