SPD's Inheritance Tax Reforms Ignite Coalition Rift in Germany

Germany's Social Democrats have proposed reforms to inheritance tax aimed at improving fairness. These include higher taxes for large estates and relief for smaller inheritances, creating tension with the conservative coalition partner. The SPD seeks to promote social equity ahead of upcoming regional elections.

Germany's Social Democrats unveiled reform plans for inheritance tax on Tuesday, aiming to enhance fairness in Europe's largest economy. The move has strained relations with its conservative coalition partner, just ahead of regional elections this year.

Under these proposals, large estates would face increased tax liabilities, while smaller inheritances would receive relief. This measure comes as SPD attempts to advocate for social equity, despite trailing behind conservatives and the far-right AfD in polls.

Furthermore, concessions are planned for family businesses to maintain stability. However, conservative leaders criticize the initiative, viewing it as a threat to German family enterprises and coalition harmony.

(With inputs from agencies.)