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Germany news: Coalition agrees package to boost growth

DW English · Jul 2, 2026, 9:23 AM · Also reported by 2 other sources

Key takeaways

  • Chancellor Friedrich Merz says his coalition has cleared a reform package as pressure grows to deliver growth.
  • Don't let the algorithm hide the news.
  • 07/02/2026July 2, 2026German businessmen admit sanctions breach over Russia exportsTwo businessmen have confessed to illegally exporting industrial equipment to Russia in violation of EU sanctions.

Why this matters: an international story with cross-border implications worth tracking.

Chancellor Friedrich Merz says his coalition has cleared a reform package as pressure grows to deliver growth. Meanwhile, a top court rejects complaints against the criminalization of childlike sex dolls. DW has more.

https://p.dw.com/p/5GQI0The four party leaders made their announcement in the Chancellery garden Image: Michael Kappeler/dpa/picture alliance Advertisement Skip next section What you need to know What you need to know Chancellor Friedrich Merz says his coalition has approved a 'catalogue of significant reforms' after coalition talks in Berlin The package includes €10 billion in income tax relief, an end to phone-based sick notes and plans to implement pension reforms Germany's Federal Constitutional Court has upheld a ban on sex dolls with childlike features A fire at a hospital in northern Germany has killed two patients Here is a roundup of the latest headlines from Germany on Thursday, July 2, 2026:

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