Germany considers 20 billion euros tax cut plan as Merz pushes forward reform agenda

Golden Ten Data, June 26 — According to informed sources, the ruling coalition led by German Chancellor Merz is negotiating personal income tax cuts of up to 20 billion euros, attempting to leverage current momentum to advance a broader reform agenda. However, parties remain divided on how to fund the tax cuts. Leaders of Merz’s Christian Democratic Union and the Social Democratic Party are set to meet on Sunday to bridge differences over a tax reduction plan for those with annual incomes not exceeding 100,000 euros. The coalition partners are preparing to hold a meeting on July 1 to finalize plans for pension, healthcare, and tax system reforms aimed at reviving Germany’s economic growth.