“Opposition is poetry, governance is dull prose” goes a wise saying. Since its founding in the 19th century, the German Social Democratic Party (SPD) has supported demands for equal opportunities, social justice and inclusion. But in recent decades, the fragmentation of the political landscape in Germany and the inevitable compromises in a coalition government force the Social Democrats to put “water in their wine” every now and then after the election.

Some say the SPD flashes left but then turns right. What is certain is that in the pre-election campaign the social democracy honors the traditions and returns to its age-old declarations: relief for the “non-privileged”, burdens for the rich and powerful. As Chancellor Olaf Solz says, presenting the party’s program for early elections on February 23, “those with high incomes should also contribute more.”

More or less taxes?

A classic slogan of the Social Democrats is the “wealth tax”, which was in place for about 100 years in Germany, but was abolished in 1997 under Helmut Kohl (which has since not stopped some of the wealthiest businessmen and income earners from moving to neighboring Switzerland). The commitment to reinstate the specific tax on assets over 100 million. euro was also included in the SPD’s election program in 2021, but never materialized, as the liberal finance minister Christian Lindner would not allow it.

The Social-Democrats are getting revenge, as for their part they block until today the complete abolition of the “solidarity contribution” for the former East Germany, which had been established “temporarily” after the Reunification, but of course nothing more permanent than temporary. Today the levy only applies to the top 10% of income categories. The Liberals (FDP) have tabled a bill for its gradual abolition until 2027, but which is referred to the social democratic calendars.

Pre-election promises that are kept

The truth is that under Olaf Solz’s government, the Social Democrats kept their commitments to “income breathers” for low and middle incomes with adjustments to the minimum wage and a higher tax-free threshold for employees from December 2024. The problem is of course that, factoring in the new increases in insurance premiums, the net disposable income of many of workers is decreasing rather than increasing. However, the SPD’s election program now promises new “reliefs for 95% of taxpayers”, without revealing details.

Significant concessions were made in the past four years also against the Greens of the Minister of Economy Robert Habeck. An example is the “green” law forbidding heating with natural gas or oil in newly built homes, which effectively forces many new owners to install heat pumps. Today the Social Democratic chancellor openly states that he disagrees with his “Green” minister, as, as he typically says, “a law such as the law on heating would not be passed by a Social Democratic government with an absolute majority.”

This is, of course, a completely theoretical work hypothesis. A one-party government with an absolute majority has never existed in post-war Germany, with the exception of Christian Democrat Konrad Adenauer at the height of his omnipotence in 1960-61.