Friedrich Merz’s tax relief package to gain support from Germany’s Upper House — Bloomberg

Chancellor Friedrich Merz has stated that the Bundesrat (Germany’s upper house of parliament) will support his €46 billion ($52.72 billion) tax relief package once the dispute over federal spending is resolved. Further details on the compromise will be announced soon, the official added.

The proposed tax reforms are designed to revive Germany’s stagnant economy by boosting employment and improving business conditions. However, according to Bloomberg, concerns about the financial burden remain , as municipalities are expected to cover roughly two-thirds of the total costs. This initially led to opposition from many regions, but an agreement was reached after negotiations between state representatives and the federal government.

The news agency also highlights early signs of recovery in Europe’s largest economy, citing the positive impact of the government’s decision to sharply increase infrastructure and defense spending. Additionally, investor confidence has risen more than expected this month.