Monday, 20 July 2026 · EconomyEarnings in Germany rose 5.1 percent in 2025
Median gross earnings in Germany rose 5.1 percent in 2025, according to the Federal Employment Agency, thus outpacing inflation. The median gained more than 200 euros, and the gap between the sexes shrank slightly. Significant regional differences remain.
According to data from the Federal Employment Agency, median gross pay rose strongly in 2025; the conservative Die Welt puts the increase at 5.1 percent and more than 200 euros at the median. Higher collective-bargaining settlements drove incomes up in real terms, according to the Sueddeutsche Zeitung, that is, more than inflation. The liberal Die Zeit and the SZ at the same time stress persistent differences: women continue to earn less than men, though the gap shrank slightly, and a marked divide yawns between the federal states. The camps report the figures in agreement but set different accents: business-friendly voices point to risen labor costs, while socially oriented outlets highlight the real-wage gains of employees. The finding lands in a debate in which the SPD is making wealth and inheritance taxes a topic and Chancellor Merz is calling for more working hours. It remains open whether the real-wage gains will hold up as the economy slows.
Die Welt · Die Zeit · Süddeutsche Zeitung
Saturday, 18 July 2026 · EconomySPD makes wealth and inheritance tax a defining issue
SPD makes wealth and inheritance tax a defining issue
After the summer recess, the SPD wants to sharpen its dispute with the CDU/CSU over higher taxes on wealth and inheritances. General Secretary Tim Klüssendorf declared the reintroduction of a wealth tax a “key issue.” He justifies this by arguing that profits are ending up with ever fewer people.
Klüssendorf announced that the SPD would fight the CDU/CSU for a return of the wealth tax and higher inheritance taxes, blaming decades of misguided tax policy. The liberal Die Zeit and the conservative Die Welt both report on the initiative but assess it from different vantage points: while the SPD frames it as a question of distributive justice, in the conservative camp it is read as a burden on the business location and on high performers. The dispute comes within a CDU/CSU-led coalition in which the SPD is the junior partner, which makes implementation more difficult. Sourcing on this day is thin and rests mainly on the SPD's initiative itself. Whether it amounts to more than campaign rhetoric remains to be seen.
Die Zeit · Die Welt
Forecast · Assessment
●Most likely60%
The initiative remains campaign rhetoric for now and runs into a blockade from coalition partner CDU/CSU, without a swift change in the law.
▲Worst case15%
The dispute strains the coalition so severely that it jeopardizes its ability to govern or its stability.
▼Best case25%
A compromise produces a moderate reform of inheritance or wealth taxation.