Here are the new reforms coming in place this year.                                                                                                                                                         

1. Premiums for statutory unemployment insurance (Arbeitslosversicherung) will go down

2. A 3 percent valued added tax increase on clothes, cars, furniture, electrical appliances and other goods, bringing VAT up to 19 percent.

3. Drivers are expected to suffer most from the VAT hike which also applies to fuel

4. Premiums have increased by almost half a percent to total 19.9 percent of people's incomes. Taxes on capital gains will be levied at a much lower ceiling.

5. A special wealth tax goes up by 3 percent for individuals making more than 250,000 euros a year. Also, special benefits for commuters are cut completely if the distance between their homes and workplaces is under 20 kilometers
   

6. Under the new child benefit plan which came  into effect on Jan. 1, parents -- either the mother or father -- would be entitled to 67 per cent of their previous income, up to a maximum of 1,800 euros a month ($2,363) while staying at home for up to 14 months.{mosgoogle}