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The SPD has proposed a significant reform to Germany's inheritance tax, aiming to increase levies on large inheritances. This plan has drawn immediate criticism from the coalition partner CDU, creating a political conflict. Concurrently, a debate over labor rights intensified as Friedrich Merz criticized high sick leave rates and called for an end to working time laws, a stance the SPD labeled a 'frontal attack' on workers. Authorities, including the BKA, conducted searches at Deutsche Bank offices as part of a money laundering investigation. In the corporate sector, SAP's stock price fell sharply, though the company announced new AI partnerships with Fresenius and Syngenta. Infrastructure disruptions occurred with a train derailment between Frankfurt, Mainz, and Wiesbaden.
Germany and France are coordinating a response to new U.S. tariff threats, with their finance ministers stating they 'will not be blackmailed' and urging EU-wide action. Estimates suggest the tariffs could cost Germany up to 15 billion euros annually. Chancellor Merz visited India, where both sides committed to a 'limitless' strategic partnership and discussed finalizing an EU-India trade deal. In Europe, Italian Prime Minister Giorgia Meloni and Friedrich Merz agreed on the need for the EU to accelerate efforts to improve economic competitiveness. In China, Volkswagen, now third in sales, is launching 30 new models to regain market share. Domestically, Germany opened a €3 billion EV subsidy program to Chinese automakers like BYD and Nio.
5 topics | 130 sources
The Social Democratic Party (SPD) in Germany has put forward a detailed plan to reform the country's inheritance tax. The proposal aims to increase taxes on large inheritances, which has drawn immediate criticism from the opposition Christian Democratic Union (CDU) and its leader Friedrich Merz. This tax debate is part of a broader political clash. Merz and the CDU have also criticized what they call 'lifestyle part-time' work and have called for changes to labor laws, which the SPD has strongly rejected.
German federal police, known as the BKA, searched the headquarters of Deutsche Bank in Frankfurt and its offices in Berlin. The raids are part of a money laundering investigation. This comes as Deutsche Bank reported record quarterly profits. The German financial regulator, BaFin, has also recently warned investors about potential losses and risks.
SAP's stock price fell sharply, dropping as much as 16% in its worst single-day loss in years. The drop came after the German software giant announced its 2026 cloud revenue forecasts, which disappointed investors and raised concerns about the growth of that part of its business. The sell-off was significant enough to briefly pull Germany's main stock index, the DAX, into negative territory. It also caused SAP to lose its position as the most valuable company in Germany, with Siemens briefly taking the top spot. Despite the cloud forecast concerns, SAP did meet its revenue targets for the last quarter of 2023. Separately, SAP announced new partnerships to use artificial intelligence in other sectors. It is working with Fresenius to advance AI use in hospitals and with Syngenta to scale AI-assisted agriculture.
German industrial giant Bosch is facing another difficult year, with its profits expected to be nearly halved in 2025. The company is also selling its stake in the AI firm Aleph Alpha to the Schwarz Group. At the same time, Bosch has announced plans to invest $2.9 billion in artificial intelligence technology over the next few years.
Politicians from Germany's governing coalition, the Social Democrats (SPD) and the Greens, are calling for an increase in the country's tobacco tax. The revenue from the higher tax would be used to fund the healthcare system. A report suggests a deal on the tax increase could be reached in June, but key details about the final amount and timing are still unresolved.
6 topics | 81 sources
Jan 29 — Jan 21
Germany pushes back against US tariff threats and considers repatriating gold reservesGermany and France are leading a coordinated European response to new tariff threats from the United States, with German officials stating they 'will not be blackmailed.' Concurrently, some German politicians and economists are advising their government to bring the country's gold reserves back from storage vaults in the United States, reflecting broader economic tensions between the two allies.