German Chancellor Merz has said there will be no corporate tax hike for medium-sized companies, while the SPD is considering higher taxes for high earners.

Speaking at a CDU event, German Chancellor Merz said that under his leadership there would be no increase in corporate tax for medium-sized companies. SPD Vice Chancellor Lars Klingbeil said that tax increases for high-income earners are not out of the question given the budget deficit. Mr Merz expressed dissatisfaction with the government's achievements and stressed the need for better communication between the coalition parties. He insisted on the need for reforms in social policies, recognizing the difficulties faced by his SPD partners.