SPD and Union Clash Over Inheritance Tax Reform in Germany

The political dispute between Germany's Social Democratic Party (SPD) and the Union faction (CDU/CSU) has intensified over the issue of inheritance tax reform. The contention centers on differing policy approaches as negotiations over potential reforms remain unresolved.

According to a January 12, 2026 report, the rift between the SPD and Union reflects deeper political divisions, with both sides entrenched in their positions regarding the inheritance tax (Erbschaftsteuer). This tax policy has become a key point of political confrontation as parties debate how to balance tax fairness with economic considerations.

The conflict signals a broader political dynamic in Germany where fiscal policy, especially relating to wealth and estate taxation, remains a sensitive and divisive topic. The SPD and Union's discord complicates prospects for a consensus-driven reform, which is critical given the significant economic and social implications associated with inheritance taxation.

As of now, no compromise has been reached, and the inheritance tax debate continues to highlight stark contrasts in policy vision between Germany's major political groups. The ongoing dispute will likely shape legislative priorities and political discourse in the near term.