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German Chancellor Friedrich Merz speaks during the question-and-answer session with the government in the Bundestag in Berlin, 24 June, 2026

Video. Germany's Merz announces sweeping reforms in key breakthrough

Updated: 02/07/2026 - 15:01 GMT+2

After seven hours of talks, the CDU/CSU-SPD coalition agreed on sweeping tax, labour and pension reforms, a breakthrough aimed at reviving the struggling economy and countering the rise of the far right.

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