Key facts
- Germany's ruling coalition announced a reform package on Thursday.
- The package includes €10 billion ($11 billion) in tax relief for lower-income earners.
- Reforms also target the pension system and affordable housing construction.
- Chancellor Friedrich Merz stated the aim is to "get Germany back on track."
- The coalition is trailing in opinion polls behind the Alternative for Germany party.
Germany's ruling coalition, facing pressure from falling opinion poll numbers and trailing the far-right Alternative for Germany party, has unveiled a significant reform package. Chancellor Friedrich Merz announced the measures on Thursday, which include €10 billion ($11 billion) in tax relief aimed at lower-income earners. The package also encompasses changes to the pension system and initiatives to accelerate the construction of affordable housing.
Merz expressed the coalition's objective to "get Germany back on track," signaling an effort to revitalize Europe's largest economy. The government has struggled to gain momentum amid internal coalition disagreements and persistent political pressure to deliver impactful reforms.