Germany's coalition presents wide‑ranging reform deal
Germany's ruling coalition agreed on a tax, pension and labour reform package presented by Chancellor Friedrich Merz, aimed at reviving the economy and countering the far‑right's political rise.
Germany's ruling coalition agreed on a reform package covering tax, pension and labour measures, which Chancellor Friedrich Merz presented on Thursday. The reforms are intended to revive Germany's sluggish economy and to address the political rise of the far right.
The coalition, consisting of the centre‑right CDU/CSU alliance and the centre‑left SPD, has been in office for just over a year (reported by Dawn; reported by GDELT).
The package includes income‑tax cuts worth €10 billion financed by higher taxes on people earning more than €250,000 a year (reported by Dawn). It provides tax relief for lower‑income families, which would make an average family about €600 better off per year (reported by GDELT; reported by Hindu). The reform raises the retirement age to a level beyond 67 (reported by Dawn) and introduces tougher rules for employees' sick leave (reported by GDELT). It also aims to reduce the country's bureaucracy (reported by GDELT) and could accelerate economic momentum by more than 1 % in 2027 (reported by Hindustan Times).
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