Under fire German ruling coalition unveils reform package


FILE PHOTO: German Chancellor Friedrich Merz speaks during a press conference following a cabinet meeting at the defence ministry in Berlin, Germany, July 1, 2026. REUTERS/Nadja Wohlleben/File Photo

BERLIN, July ⁠2 (Reuters) - German Chancellor ⁠Friedrich Merz's ruling coalition ‌unveiled a package of reforms on Thursday, including €10 billion ($11 ​billion) in tax ⁠relief for lower ⁠income earners, changes to ⁠the pension ‌system and building more ⁠affordable housing.

Trailing in opinion polls ​behind ‌the far-right Alternative for ⁠Germany party, ​Merz has faced heavy pressure to pass ⁠reforms to revive ​Europe's largest economy but has struggled to overcome internal ⁠coalition wrangling and gain momentum.

"We want to get Germany back on ​track," Merz ⁠told reporters on Thursday.

($1 = ​0.8777 euros)

(Reporting ‌by Miranda Murray ​and Matthias Williams, editing by Thomas Seythal)

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