German court upheld the solidarity tax, crucial for reunification costs, against a political challenge.

Germany's Constitutional Court upheld the solidarity tax, initially set for financing German reunification, rejecting a challenge from the Free Democratic Party. The tax, at 5.5% for high-income earners, is deemed still necessary for ongoing reunification costs. The court stated the tax remains constitutional as long as these financial needs persist, avoiding a potential €12.6 billion budget gap.