German coalition passes €10 billion tax, labour and pension reform package

Germany's ruling coalition approved a sweeping tax, labour and pension reform package, including a €10 billion tax relief for lower and middle incomes, according to Al Jazeera. The plan proposes a reduction in income tax for households below a set threshold to boost disposable earnings. It also introduces stricter sick-leave regulations aimed at curbing abuse.

In the pension sector, the coalition pledged adjustments to contribution rates and retirement age to improve long-term sustainability. Funding for the reforms will come from increased surcharges on high-income earners. The measures now await final approval from the Bundestag, where legislators will debate the details.