Germany’s governing coalition has unveiled a comprehensive reform package designed to revitalize the nation’s struggling economy and counter the growing support for the far-right AfD party. Chancellor Friedrich Merz announced the agreement, which includes 10 billion euros in income tax cuts funded by increased taxes on high earners. Changes to the pension system will gradually increase the retirement age, while corporate reporting requirements will be reduced to ease burdens on businesses. The reforms also aim to reduce employee absenteeism by ending telephone sick notes and will allow for longer-term temporary employment contracts. While business organizations have praised the plans, labour unions have criticized aspects of the labour reforms as detrimental to workers' rights. The coalition, facing internal struggles and public dissatisfaction, hopes these measures will demonstrate effective governance and boost economic growth.