German coalition agrees to fast-track infrastructure, scrap unpopular heating law

German Chancellor and leader of the Christian Democratic Union (CDU) Friedrich Merz, Finance Minister and co-leader of the Social Democratic Party (SPD) Lars Klingbeil, Labour and Social Affairs Minister and SPD co-leader Baerbel Bas, and Christian Social Union (CSU) leader and Bavarian State Premier Markus Soeder attend a press conference, following a government coalition board meeting at the Chancellery, in Berlin, Germany December 11, 2025. REUTERS/Annegret Hilse

BERLIN, Dec 11 (Reuters) - Germany's ruling coalition has agreed a new law to fast-track infrastructure projects and to scrap clean-heating legislation in favour of a broader law on modernising buildings, Chancellor Friedrich Merz said on Thursday.

Merz's government, which took power seven months ago, has pledged to revive Germany's sluggish economy, Europe's largest, by accelerating projects to improve infrastructure.