After hours of negotiations, the coalition leaders have agreed on a major reform package that includes an income tax reform as well as measures to improve labor market regulations and reduce bureaucracy. The details of the agreement are to be presented at a press conference this morning at 9:00 a.m.
Friedrich Merz, leader of the CDU, expressed optimism before the talks about the prospects for an agreement. He emphasized that the goal is to relieve private households while promoting investments in industry. “My expectation is that we will really make a big leap forward in modernizing our country,” Merz said.
Industry has high expectations for the reform package. Tanja Gönner, managing director of the Federation of German Industries, stated that the economic situation is too serious to waste any more time. President Frank-Walter Steinmeier also referred to the ongoing coalition consultations and hopes that the package will positively influence public sentiment.
The coalition partners had already agreed on many steps in days of preparations, with about 30 points being mentioned. The biggest sticking point in the negotiations was the income tax reform, where it was disputed whether substantial relief for small and medium incomes is possible and how it can be financed.
Source: Tagesschau
