Merz outlines sick leave crackdown as part of plan to revive Germany’s economy

Published July 2, 2026 4:45pm ET



German Chancellor Friedrich Merz unveiled a 34-point plan to revive Germany’s economy, including controversial plans to crack down on sick leave.

Germany’s economy has faltered in recent years, and the global energy crisis from the Iran war worsened the situation after a brief respite last year. After late-night negotiations Wednesday, Germany’s ruling Christian Democratic Union-Social Democrat coalition reached a deal on the economic reform platform. Among the most notable reforms were stimulus packages for strategic industries, slight tax hikes for the ultrawealthy, tax cuts for working families, and, controversially, an end to sick leave via phone.

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