German Leaders Seal 34-Point Economic Plan as Far-Right AfD Gains
Updated
Updated · The New York Times · Jul 2
German Leaders Seal 34-Point Economic Plan as Far-Right AfD Gains
3 articles · Updated · The New York Times · Jul 2
Summary
Germany’s coalition agreed a 34-point package on Thursday to revive the economy, with Chancellor Friedrich Merz casting it as a test of whether the political center can still deliver.
The plan would loosen labor laws, shore up pensions, cut middle-class taxes, raise rates on top earners, and reduce regulation and bureaucracy; related reports said it includes about 10 billion euros in annual tax relief.
Those trade-offs are likely to anger both labor leaders and wealthy business owners, underscoring how politically costly the compromise could be for Merz’s center-right bloc and its center-left partners.
The deal comes as Alternative for Germany gains on public anxiety over the economy and immigration, giving the package significance beyond Germany as other European mainstream parties face similar far-right pressure.
Can Germany's domestic reforms succeed while it avoids a direct economic confrontation with China?
Will asking Germans to work longer for less security revive an economy battered by global competition?
Can Germany’s 34-Point Revival Plan Save Its Economy? Merz’s 2025 Reforms Under Fire
Overview
In May 2025, Chancellor Friedrich Merz's government launched a 34-point economic revival plan to address Germany's urgent challenges. This move came after leaders agreed that the current path was unsustainable and that bold action was needed. Merz called on the public to support decisive reforms, aiming to modernize the country and restore confidence. The plan targets tax relief, pension stability, and deregulation to boost competitiveness, responding to a weak economic outlook and slow GDP growth. By focusing on leadership and public support, the government seeks to drive meaningful change and secure Germany's economic future.