The SPD's Lars Klingbeil is pushing a broad tax reform package that includes abolishing the Ehegattensplitting for new marriages as a central move to boost work and employment in Germany.

His plan frames modernization of Germany within a broader coalition reform agenda, seeking to balance revenue with redistribution through targeted relief and a comprehensive tax overhaul amid electoral pressure.

Concrete ideas include extending retirement years, tying benefits to contribution years, expanding fixed-term contracts with works council input, and delivering substantial income tax relief expected to reach the majority of workers.

Opposition leader Merz emphasizes strengthening defense, economy, and social cohesion, while proposing measures to ease commuter costs and noting some policies may need to be timed for next year or funded through broader fiscal considerations.

Media framing portrays a shift toward a more conservative, fiscally cautious tone with language that highlights saving and encouraging more work.

Merz remains skeptical about an over-windfall tax on corporate profits but leaves room for discussion.

Besides labor market reforms, asylum seekers could gain quicker recognition of qualifications and faster work permits; international skilled workers remain a priority.

The policy proposals are presented as strategic moves within internal party dynamics and public messaging.

Pension policy would shift away from fixed retirement age toward years worked, promoting longer workforce participation and preventing early retirement.

Financing comes from raising the top marginal tax rate with a focus on fair distribution, plus reform of inheritance taxes to sharpen progressivity.

There is concern about alignment with conservative opponents and whether the weakened SPD can push through reforms amid recession risks.

Labor market reforms include capping mini-jobs, restricting tax- and social security-free earnings to 603 euros for specific groups, and moving others toward insured employment, while considering removing free spousal health insurance for low-income partners.