R24
NewsAgency
Hourly news
Friedrich Merz targets growth with sweeping 34-point German reform planSerafin Challenges Frugal States Over EU Budget CutsGlobal chip stocks retreat as markets brace for U.S. payroll dataBeyond Extraction: Redefining the EU-Africa PartnershipThe digital euro risks becoming a tool for banks, not the publicAustrian Supreme Court confirms fraud conviction for Rene BenkoFriedrich Merz targets growth with sweeping 34-point German reform planSerafin Challenges Frugal States Over EU Budget CutsGlobal chip stocks retreat as markets brace for U.S. payroll dataBeyond Extraction: Redefining the EU-Africa PartnershipThe digital euro risks becoming a tool for banks, not the publicAustrian Supreme Court confirms fraud conviction for Rene Benko
Business

Friedrich Merz targets growth with sweeping 34-point German reform plan

German Chancellor Friedrich Merz has unveiled a 34-point legislative package aimed at revitalizing the nation's economy through pension adjustments, tax relief, and aggressive deregulation. The government plans to push the reforms through parliament by year-end, promising to balance increased competitiveness with existing social welfare protections.

Today, 14:17Business Person795 views

The proposed pension overhaul introduces a capital markets-based component alongside a gradual rise in the retirement age. To support working families, the plan promises over €600 in annual income tax relief, totaling €10 billion. This reduction is balanced by raising the top tax rate to 47% for individuals earning at least €280,000 annually.

Labor market changes focus on workplace efficiency. Employees will be required to provide medical certificates for sick leave from the first day, ending telephone reporting. Furthermore, firms gain the ability to offer fixed-term contracts of up to 48 months for new hires through 2030, while also securing greater flexibility in dismissal-with-compensation agreements for top earners.

The administration is also targeting systemic bureaucracy. A key proposal includes automatic approval for permit applications if authorities fail to intervene within four months, coupled with a goal to cut federal staffing levels by 8%. Industrial policy shifts toward strengthening strategic sectors like semiconductors, clean tech, and AI, while the Deutschlandfonds will evolve into a vehicle focused on energy and raw material resilience. To accelerate infrastructure, the government aims to halve the timeline for electricity grid expansion projects.

Comments

Comments (0)

Leave a comment

No comments yet. Be the first!