A simmering coalition dispute threatens to erupt within the German government as the CDU/CSU’s influential economic affairs wing forcefully rejects proposed changes to inheritance tax spearheaded by the Social Democrats (SPD). The outright condemnation, delivered with stark warnings about the potential collapse of the fragile governing alliance, signals a deepening ideological rift and raises serious questions about the stability of Chancellor Scholz’s administration.
Christian von Stetten, chairman of the Parliamentary Circle for Medium-Sized Businesses (PKM), a group representing over a third of CDU/CSU members in the Bundestag, characterized the SPD’s proposals as a “frontal attack” on German family businesses and a definitive end to the declared “coalition peace” established late last year. These businesses, vital to the German economy, are facing a potentially crippling impact under the suggested reforms, which critics argue would effectively dismantle many of the nation’s largest family-owned enterprises.
The PKM’s stance directly contradicts the SPD’s rationale for the tax overhaul – purportedly driven by a desire for greater social equity and to address rising income inequality. von Stetten accused the SPD of exploiting “envy and resentment” to secure electoral gains, alleging their approach undermines economic confidence and effective governance. He further questioned the leadership of Finance Minister Christian Lindner, suggesting his reliance on policies that foster division is detrimental to public trust and the nation’s economic health.
The timing of this escalation is particularly significant. Amidst concerns about slowing economic growth and rising inflation, the CDU/CSU is advocating for tax cuts for both citizens and businesses – a direct counterpoint to the SPD’s progressive tax agenda. The clash highlights a fundamental disagreement on the role of government intervention and the best path to economic recovery.
Analysts suggest that while a complete breakup of the coalition remains unlikely, this public and pointed condemnation from within the CDU/CSU significantly weakens the government’s unity. It creates a precarious political landscape, potentially forcing difficult compromises and signaling a protracted period of policy gridlock as both parties grapple for control of the economic agenda ahead of upcoming state elections. The debate also draws attention to the increasingly polarized political climate in Germany and the challenges of maintaining consensus-based governance in a deeply divided nation.