Germany Rolls Out Broad Reform Package to Boost Economy

After seven hours of talks, Germany's CDU/CSU-SPD coalition unveiled a 34-measure reform package to revive growth: tax relief for low- and middle-income families (about €600 per year on average), a pension overhaul with a gradual rise in retirement age, stricter sick-leave rules requiring a doctor's certificate from day one, extended Sunday opening hours and more flexible fixed-term contracts, sunset clauses to cut red tape, and housing/market measures. Top earners would face higher rates (45% from €250k and 47% from €280k) while the 42% rate remains, with total relief around €10 billion annually. The government aims to boost competitiveness and counter the AfD ahead of September state elections.