Germany: reform proposals affecting the world of work

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Faced with the urgent need for far-reaching reforms to modernize the country and revive its economy, the leaders of Germany's governing coalition unveiled 34 measures in Berlin on July 2, covering a wide range of issues, including the labour market. Below is a summary of the measures affecting employees and employers. The proposed abolition of the eight-hour working day as the reference framework has been postponed to avoid a major confrontation with the trade unions.
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With the German economy continuing to stagnate, the parties in government—the Chancellor Merz’s conservative alliance and the Social Democratic Party (SPD)—have finally begun to deliver the major reforms they have been promising for the past year. Following eight hours of negotiations and arbitration, members of the Coalition Committee, led by Chancellor Friedrich Merz, announced 34 measures on 2 July aimed at reducing bureaucracy and reforming taxation, healthcare, pensions and the labour mark

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