Germany rolls out sweeping reforms to revive growth and curb far-right pressure

Germany’s ruling CDU/CSU–SPD coalition unveiled a broad reform package called the Programme for Revival and Employment, including about €10 billion in annual income tax relief for low- and middle-income earners from 2027, a major pension overhaul linked to life expectancy after 2031 (potentially reaching 70 by the 2090s), tighter sick-leave rules, longer fixed-term contracts, and reduced bureaucracy. The plan is funded mainly by shifting more tax burden onto top earners and aims to boost growth while countering far-right pressure, but still requires Bundestag and Bundesrat approval. Analysts say it could improve sentiment and lift growth later in the year.