German coalition drops tax and welfare reforms
Chancellor Friedrich Merz's governing coalition backtracked on contentious tax and welfare reforms during budget talks. Lawmakers postponed a sugary drinks tax and shelved a planned plastic levy for 2027.
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Germany's governing coalition backtracked on contentious tax and welfare reforms on Wednesday, postponing a sugary drinks tax and shelving a plastic levy during budget talks. The policy shift comes as lawmakers finalize the 2027 federal budget worth €555.4 billion ($616 billion). The adjustments reflect ongoing economic pressures in EUR/USD trading as lawmakers balance defense spending against household relief.
