Germany's ruling coalition presented a comprehensive reform package on Thursday with the goal of getting the country's sluggish economy back on track.
The coalition of CDU, CSU and SPD have agreed on 34 measures that include cuts to income tax for low- and middle income families, an overhaul of the creaking pension system and tougher rules for employees' sick leave.
"We are working to increase the flexibility of our businesses," Chancellor Friedrich Merz told a press conference in Berlin after seven hours of talks.
"We are working to cut red tape. We are working to protect our welfare state, and we are working to ease the burden on employees and companies by lowering taxes," said Merz while presenting the "Programme for Revival and Employment".
The tax relief would mean an average family is about 600 euros better off per year, the parties said.
