Germany Awaits Court Ruling on Contested Solidarity Surcharge

The Federal Constitutional Court's decision could reshape fiscal policy, with potential taxpayer refunds of €66 billion at stake.

The Federal Constitutional Court will announce its ruling on the legality of the solidarity surcharge on March 26, 2025.
The surcharge, introduced in 1991 to fund German reunification, currently generates €12 billion annually from high earners and corporations.
Six FDP lawmakers argue the tax is unconstitutional, claiming it no longer serves its original purpose and violates equality principles.
A ruling against the surcharge could require retroactive refunds to taxpayers totaling approximately €66 billion, creating significant budgetary challenges.
The SPD and Greens defend the surcharge, citing ongoing reunification-related costs estimated at €13 billion annually.