Story perspectives

German Court Eyes Inheritance Tax Break, Jobs at Stake

5/2/2026

Summary

Story summary

Germany’s Constitutional Court will rule on a €5 million inheritance-tax break for firms, a decision that leaders warn could force heirs like Andre von Bargen to cut investment and jeopardise jobs in firms employing half the workforce.
The Tax Foundation says the UK’s labour tax wedge is 29.2%, below Germany’s 46.6% and France’s 44.6%.
Welsh Labour’s poll slump before 7 May Senedd election coincides with forecasts that Reform UK will lead Midlands council votes.

History

Historical Context

Gerhard Schröder took office as chancellor in 1998 and, with finance minister Oskar Lafontaine, launched tax reforms to strengthen the Mittelstand, a policy line that reappears in the Constitutional Court’s €5 million inheritance-tax exemption for heirs like Andre von Bargen. Schröder’s agenda also featured a 10% income-tax cut in 2004, illustrating a long-term push to ease fiscal burdens on German firms.

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Story summary

Germany’s Constitutional Court will rule on a €5 million inheritance-tax break for firms, a decision that leaders warn could force heirs like Andre von Bargen to cut investment and jeopardise jobs in firms employing half the workforce.
The Tax Foundation says the UK’s labour tax wedge is 29.2%, below Germany’s 46.6% and France’s 44.6%.
Welsh Labour’s poll slump before 7 May Senedd election coincides with forecasts that Reform UK will lead Midlands council votes.

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