German opposition and coalition sources report that Friedrich Merz, leading the government, unveils a broad reform package aimed at reviving economic growth. The proposal includes about €10 billion in tax cuts, presented as a measure to support investment and consumer activity. Alongside fiscal steps, the plan features labour and social policy changes that address workforce availability and costs. Multiple outlets say the package includes adjustments to sick-leave rules, with measures described as tightening eligibility and rules for time off work. The reforms also cover working-time policy, including longer Sunday opening hours for shops, with the changes tied to agreements within the ruling coalition. The Financial Times and Winnipeg Free Press both describe the package as sweeping, while noting that coalition members had to work through earlier divisions to reach agreement. In addition to taxes and sick-leave reform, the Winnipeg Free Press references a pension overhaul as part of the broader agenda, framing it as a structural element of the growth strategy. Details are presented as part of a unified government program covering tax, pensions, and workplace regulations.
Merz unveils €10bn tax cuts and labour reforms in push for German growth
German opposition and coalition sources report that Friedrich Merz, leading the government, unveils a broad reform package aimed at reviving economic growth. The proposal includes about €10 billion in...
- Merz announces a broad reform package intended to revive German economic growth.
- The plan includes about €10 billion in tax cuts.
- Sick-leave rules are tightened as part of the reforms.
- The government also agrees on longer Sunday opening hours for retailers.
- A pension overhaul is included in the broader policy agenda.
Ruling coalition overcomes divisions to agree longer Sunday opening hours and tighter sick-leave rules
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