Klingbeil wants to reform inheritance tax: “Strong shoulders can achieve more”

2:48 p.m.: That was it with the Klingbeil speech.

2:47 p.m.: For him, tax justice also includes taking targeted action against tax crime. “A few weeks ago I presented drastic measures against organized crime,” said Klingbeil and announced: “I will soon present a comprehensive action plan against tax fraud,” said the Vice Chancellor.

2:46 p.m.: Klingbeil also wants a digital tax, “whose revenue should flow specifically into “media diversity and independent journalism”.

2:45 p.m.: “Strong shoulders can do more – and they should,” says Klingbeil. He believes that “small inheritances are sometimes even more heavily burdened than very large ones.” He wants a reform of the inheritance tax. “The additional income should be invested specifically in education and equal opportunities,” said Klingbeil.

Klingbeil suggests founding a “state housing association”.

2:44 p.m.: The rental costs would become a financial burden for many. He first suggested “founding a state housing company”. “Especially in large cities, tenancy law needs to be tightened and rent prices must be effectively limited,” says Klingbeil. The rent control should probably be expanded.

2:43 p.m.: Klingbeil speaks above all about affordability. “Energy costs have to come down,” says Klingbeil. That’s why renewable energies are being expanded.

2:42 p.m.: Now it’s about social justice.

Three measures against the Iran war

2:41 p.m.: Klingbeil also speaks of a “clear course in energy policy”. “More wind and solar, the development of electricity storage, the modernization of our networks” are needed. “Anyone who slows down the energy transition weakens Germany.”

The state should also act as a strategic investor.

2:40 p.m.: Because of the Iran war, Klingbeil announces three measures:

• “Firstly, we should Skim off excess profits from energy companies“, he says.
• “Secondly, I promote binding price limitsthat are specified. Our
  Neighboring countries, for example Luxembourg, are showing how it works.”
• “Third, I want specifically return siphoned-off profits to the citizens – for example through relief from mobility costs or through a temporary reduction in energy tax.

Klingbeil wants more local patriotism

2:37 p.m.: Klingbeil appeals: “I would like the boards to think more about home and employees than about margins.” He wants more local patriotism.

2:36 p.m.: “We can protect the competitiveness of domestic companies with targeted tariffs,” says Klingbeil, seeming to have copied something from Donald Trump.

He also wants to venture into more China. In areas where one is lagging behind, joint ventures could be created with foreign companies – according to EU rules. Takeovers should be better regulated and investment protection strengthened.

2:35 p.m.: “I am for a radical reduction in bureaucracy and for significantly less regulation,” said Klingbeil. “When social partners agree on things together with collective agreements and co-determination.” The state could then withdraw.

“Reporting requirements down, liability up,” he says. There should be less bureaucracy but anyone who abuses it should be severely punished.

Bonus-malus system for effective and quick investments

2:34 p.m.: Klingbeil also wants to focus on future industries: AI, climate tech, life sciences.

Funding will no longer be lavished, but funding programs will be combined and aligned with leading-edge clusters.

2:33 p.m.: Klingbeil wants to introduce a “bonus-malus system for effective and quick investments”. Specifically: Anyone who invests funds quickly and sensibly should receive a bonus. Where projects are implemented too slowly or funds are not invested sensibly, funds are cut if in doubt.

2:32 p.m.: “A new German growth model needs: innovation, more productivity and technological leadership,” said Klingbeil. The current pace of planning, approvals and implementation is not enough for him.

Klingbeil on pension reform: 3,600 billion are lying dormant in Germany that “we can mobilize”

2:29 p.m.: There are more than 3,600 billion euros in German savings accounts, he says. “Money that we can mobilize,” said Klingbeil. He announces a reform of private pension provision and an early start pension. “I am also calling for the introduction of a mandatory, funded company pension, to which employers and employees make their contribution,” said Klingbeil.

2:28 p.m.: When it comes to pensions, Klingbeil supports focusing “much more closely on the contribution years”.

Klingbeil promises tax reform that will “relieve 95 percent of employees”

2:25 p.m.: “Work in Germany must also become more attractive overall during working life,” he says and announces: “Therefore, I will present an income tax reform with the aim of relieving the burden on 95 percent of employees.” That should be a few hundred euros a year for each of them. “Those who make an effort and work more will finally have more money in their pockets with this reform.”

High income earners, on the other hand, should have to do more.

2:24 p.m.: Part of the reform is also to improve work opportunities for asylum seekers. “The accelerated professional recognition and work permit after three months for asylum seekers must therefore come quickly,” said Klingbeil. They also want to recruit skilled workers from all over the world.

2:23 p.m.: Disincentives in social benefits must be eliminated, says Klingbeil. A reform of the transfer withdrawal rates is therefore needed, he announces. “More work must always be worth it.”

End of spousal splitting

2:22 p.m.: “We are expanding the care infrastructure,” says Klingbeil

2:21 p.m.: I want to eliminate false tax incentives that keep women in particular in the part-time trap. I want to abolish spousal splitting in its current form for future marriages. A reform could lead to the filling of tens of thousands of full-time positions

2:20 p.m.: “I want us to create a system in which willingness to perform pays off. In which it is worth working more,” said Klingbeil and continued: “Nobody wants to be dependent on social benefits.”

2:19 p.m.: The problems on the labor market are obvious: high part-time rates. Incentives for early exit from the labor market. Transfer systems that sometimes even devalue additional work.

2:18 p.m.: “We as a society will have to work more overall,” says the Vice Chancellor. But you want to relieve the burden on people who really achieve something.

Klingbeil wants “Alliance for Work and Innovation”

2:17 p.m.: I propose that we move forward in an alliance for work and innovation together with unions, employers and science

2:14 p.m.: “We can’t answer every crisis and every problem with more money,” he says, preparing the country for reforms. The 2027 budget will lead to painful cuts.

2:13 p.m.: This will no longer work in 2026. “We need technology leadership in key areas, competitive framework conditions for investments, a modern industrial base, secure supply chains, functioning capital markets,” said Klingbeil.

2:12 p.m.: Too often Germany was dependent – on others. Klingbeil names Russia and China, among others. That has to change. They rested on obsolete business models.

2:10 p.m.: “Whether Germany remains a strong country is up to us. We alone decide
about it. Not the White House, not the Great Hall of the People – especially
“Not the Kremlin,” says Klingbeil. This requires courage. Germany needs fundamental
necessary reforms,” ​​he says.

The Klingbeil speech in the live ticker

2:09 p.m.: Klingbeil says he wants to open doors for reforms. “The challenges posed by wars and crises enter our everyday lives,” said the Vice Chancellor. There must be answers to this.

2:07 p.m.: Now the speech begins.

2 p.m.: We are still waiting for Finance Minister Lars Klingbeil. However, it is already known in advance which key points he will address. It will be about income tax reform, spouse splitting and the general reform summer.

The Vice Chancellor’s speech at the Bertelsmann Foundation in Berlin is intended to address topics such as strengthening competitiveness, the performance of the national economy and social justice. The course is expected to be set for the reform projects that the coalition of the Union and the SPD want to implement in the coming months.

The black-red federal government wants to use the time before the summer break to strengthen social security systems such as pensions, statutory health insurance and care for the future, which are under financial pressure. After the SPD’s heavy defeats in the state elections this year, Klingbeil is also under pressure within the party: critics are calling for the SPD leadership to sharpen its profile in terms of content. After his speech, Klingbeil wants to discuss his ideas with experts on the podium at the Bertelsmann Foundation.