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"publishedAt": "2026-07-02T18:49:31.000Z",
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"https://www.aljazeera.com/news/2026/7/2/german-coalition-agrees-on-sweeping-reform-package-in-key-breakthrough"
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"textContent": "submitted by Powderhorn to news\n3 points | 0 comments\nhttps://www.aljazeera.com/news/2026/7/2/german-coalition-agrees-on-sweeping-reform-package-in-key-breakthrough\n\n> German Chancellor Friedrich Merz’s ruling coalition has unveiled a sweeping package of tax, labour and pension reforms aimed at reviving Europe’s largest economy and countering a surge by the far right.\n>\n> The “Programme for Revival and Employment” announced on Thursday includes about 10 billion euros ($11.4bn) in annual income tax relief targeted at lower and middle-income earners, taking effect from January 1, 2027.\n>\n> The 34 reform measures also include an overhaul of the creaking pension system, tougher rules for employees’ sick leave and a reduction of the country’s stifling bureaucracy.\n>\n> The tax relief is to be financed primarily by restructuring the surcharge on top incomes.\n\n“The highest earners in this country will therefore take on a larger share” of the tax burden, said Finance Minister and Vice Chancellor Lars Klingbeil of the centre-left SPD. “That is fair, so that our country can move forward.”\n\nIt’s so weird to hear politicians make sense at the Cabinet level.",
"title": "German coalition agrees on sweeping reform package in key breakthrough"
}