Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleGermany's Chancellor Friedrich Merz's coalition government has unveiled a comprehensive package of reforms aimed at revitalising the economy and boosting competitiveness. Key measures include €10 billion in annual tax relief for lower-income families, funded by raising the top tax rate for high earners, and significant changes to the pension system. The reforms also seek to ease the burden on businesses by cutting red tape, increasing flexibility for short-term contracts, and tightening sick leave rules, requiring a medical certificate from the first day of illness. While economists and some employers have welcomed the proposals as a "long-overdue change of course," unions have criticised aspects like fixed-term contracts and potential increases to the retirement age. These reforms come as Germany's economy struggles post-COVID, facing increased international competition and higher energy prices, with the government aiming to strengthen its position as a business location. In fullGerman workers banned from taking sick leave without a medical note in tough reformsMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Germany unveils pension, tax and labour reforms to boost economy
Stay up to date with notifications from The IndependentNotifications can be managed in browser preferences.Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleGermany's Chancellor Friedrich Merz's coalition government has unveiled a comprehensive package of reforms aimed at revitalising the economy and boosting competitiveness. Key measures include €10 billion in annual tax relief for lower-income families, funded by raising the top tax rate for high earners, and significant changes to the pension system. The reforms also seek to ease the burden on businesses by cutting red tape, increasing flexibility for short-term contracts, and tightening sick leave rules, requiring a medical certificate from the first day of illness. While economists and some employers have welcomed the proposals as a "long-overdue change of course," unions have criticised aspects like fixed-term contracts and potential increases to the retirement age. These reforms come as Germany's economy struggles post-COVID, facing increased international competition and higher energy prices, with the government aiming to strengthen its position as a business location. In fullGerman workers banned from taking sick leave without a medical note in tough reformsMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
