German Chancellor Friedrich Merz’s coalition is negotiating as much as €20 billion ($22.8 billion) in income-tax relief as it taps momentum for its broader reform agenda, though the parties remain divided on how to pay for the cuts.

Chancellor Friedrich Merz’s ruling coalition is preparing to back a proposal for a sweeping overhaul of Germany’s pension system, including politically sensitive measures such as a market-based savings component, tighter rules on early retirement and a gradual increase in the retirement age, people familiar with the matter said on Sunday.

The head of Germany’s state development bank warned that a rising tide of political extremism poses a threat to foreign investment in Europe’s biggest economy.

Several European Union countries are expressing concerns about the bloc’s move to loosen budget rules as the Iran war squeezes markets, arguing the continent may be eroding its fiscal discipline.

Europe is shaking itself awake.

Europe is shaking itself awake.

Chancellor Friedrich Merz’s coalition will attempt to overcome deep differences over a sweeping reform agenda in talks Wednesday as parties turn to a plan for a broad tax cut alongside potential hikes for higher earners.

Germany’s government is struggling to mobilize infrastructure spending from its flagship €500 billion ($582 billion) investment fund designed to revive Europe’s largest economy.

The European Union’s six largest economies have agreed on a plan to implement a bloc-wide capital markets union, reaching a collective stance they say will help spur the continent to action after years of delay.

The European Union’s six largest economies have agreed on a plan to implement a bloc-wide capital markets union, reaching a collective stance they say will help spur the continent to action after years of delay.

The European Union’s six largest economies are advancing plans for a bloc-wide capital markets union, hoping their collective voice will spur the continent to action after years of delay.

The European Union’s six largest economies are advancing plans for a bloc-wide capital markets union, hoping their collective voice will spur the continent to action after years of delay.

The European Union risks walking into a Russian trap by discussing the possible appointment of a special envoy to negotiate with President Vladimir Putin, the bloc’s top diplomat said.

Germany’s far-right party is vetting public workers ahead of a planned purge of civil servants if it takes control in an eastern region holding an election later this year, according to people familiar with the matter.

The European Union is considering Italy’s plea to get more leeway on the bloc’s fiscal rules as the Iran war raises costs for households and businesses.

Germany plans to increase the firepower of its national raw-materials fund by as much as half to €1.5 billion ($1.7 billion) as it seeks to reduce dependence on critical supplies from countries such as China and shore up supply chains. Officials are also considering expanding the vehicle into a sovereign wealth fund from 2028 onward.

European Union economy chief Valdis Dombrovskis said the European Central Bank will need to address the continent’s rising inflation due to the war in Iran.

European Union economy chief Valdis Dombrovskis said the European Central Bank will need to address the continent’s rising inflation due to the war in Iran.

European Union economy chief Valdis Dombrovskis said the European Central Bank will need to address the continent’s rising inflation due to the war in Iran.

German Finance Minister Lars Klingbeil said Europe must assert its own interests against global competitors with measures such as favoring companies from the region.