The leaders of the Union and SPD have agreed on a reform package after seven and a half hours of talks in the Chancellery. Details are to be presented at a press conference on Thursday morning at 9 a.m. The package includes changes to income tax among other measures.
The black-red coalition's negotiations ended on Wednesday evening with an agreement. The party leaders of the CDU, CSU and SPD plan to announce the results on Thursday.
The reform package aims to stabilize social security systems, provide tax relief for citizens and boost the economy. It covers areas including pensions, health, care, the labor market and bureaucracy reduction.
Chancellor Friedrich Merz had expected a major leap in modernizing the country before the round. The income tax reform is intended to relieve mainly small and medium incomes from January 1, 2027.
Earlier negotiation attempts after Easter had failed. The current package is seen as important for the government ahead of state elections in eastern Germany.
