Books that I remember my parents reading to me include a lot of Michael Ende.
He wrote The Neverending Story, but for some reason we never read that one.
Same goes for Momo, which I think is his second-most popular book.
I mostly remember Jim Button and Luke the Engine Driver and The Night of Wishes.
Also books by Astrid Lindgren, mostly The Brothers Lionheart and Ronia, the Robber's Daughter.
(I think Mio, My Son is also good but I haven't read it yet.)
Not sure all of these are in print though.
I also liked Beatrix Potter's books.
And there's Tove Jansons' Momin books too.
I didn't read these as a child but recommend them nonetheless:
The Edge Chronicles by Paul Stewart & Chris Riddell
The Enchanted Forest books by Patricia Wrede
The City of Ember by Janne DuPrau
Desi the fuzzy fluffhead
And I haven't read "The Girl Who Circumnavigated Fairyland in a Ship of Her Own Making" yet, but it's on my tbr list and sounds pretty good
I haven't read that yet either, but if you want a taste of it,
there's a prequel story up on the website of their publisher.