India, July 2 -- German Chancellor Friedrich Merz and his coalition government have unveiled an extensive 34-measure reform package aimed at pulling Europe's largest economy out of its prolonged stagnation and restoring growth momentum.

Presenting the plan on Thursday, Merz said the reforms are designed to "set out into the future" and strengthen Germany's economic foundations at a time of mounting domestic and global pressures.

"We're strengthening ourselves so that we can live well in these new times," he said.

Tax relief for families and workers

A key pillar of the package is income tax cuts for low- and middle-income households.

Overall, the reforms are expected to reduce tax revenue by roughly €10 billion per year.

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