Merz Coalition Draws Up Road Map for German Reforms by July

German Chancellor Friedrich Merz’s coalition broke a deadlock on energy and resolved to push through a broader set of reform measures by parliamentary recess in July after a meeting aimed at regaining momentum.

The chancellor’s Christian Democratic-led bloc and the Social Democrats met for six hours on Tuesday in an attempt to address widening rifts over changes to Germany’s income tax and state pension systems, while weighing measures to alleviate higher fuel costs on households and businesses.