Coalition plans reform package on taxes, pensions and bureaucracy

Germany's black-red federal government aims to pass a package of reforms covering taxes, the labor market, pensions and bureaucracy reduction before the summer break. A further coalition committee meeting shortly before the parliamentary summer recess in early July is set to make the decisions. Chancellor Friedrich Merz will invite social partners to the chancellery in early June.

The coalition committee met on Tuesday evening. No official decisions were taken. The Handelsblatt learned from coalition circles that the four reform areas are to be addressed together in the package.

Merz had visited the German Trade Union Confederation congress the day before. His speech provoked boos and protests there. Parliamentary group leaders Jens Spahn and Alexander Hoffmann informed their factions about the plans on Wednesday.

The new meeting is to be better prepared in terms of content than the recent gathering at Villa Borsig. The atmosphere there had been tense and the meeting had largely remained inconclusive.

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