The German chancellor will unveil on Thursday a series of measures on pensions, taxation and competitiveness to pull the country out of economic stagnation.

Friedrich Merz announces a vast reform plan to revive the German economy
Friedrich Merz announces a vast reform plan to revive the German economy

Germany's ruling coalition unveiled a reform program Thursday morning, addressing pensions, taxation, purchasing power, and competitiveness. Chancellor Friedrich Merz presented the plan as a response to an economy that has been fluctuating between recession and stagnation for several months. He called on Germans to support these structural changes, stating that his government would do everything possible to pull the country out of its sluggish growth.

Tax cuts and trade toughness

The announced measures include targeted tax cuts for the middle and working classes, as well as a tougher trade policy toward China. This series of reforms comes amid a tense political climate, with a rising far right putting pressure on the government. However, the business community's reaction to this ambitious program remains mixed.

Friedrich Merz is counting on this compromise reached within the coalition to revitalize Europe's largest economy. The Chancellor hopes these reforms will restore Germany's competitiveness on the international stage and address citizens' growing concerns about the economic sluggishness. Implementing these measures will be a major test for the government in the coming months.

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