(L-R) Bavaria's State Premier and leader of the conservative Christian Social Union (CSU) Markus Soeder, German Chancellor Friedrich Merz (CDU), German Minister for Labour and Social Affairs Baerbel Bas (SPD) and German Finance Minister and Vice Chancellor Lars Klingbeil (SPD) address a press conference, on July 2, 2026 in the garden of the Chancellery in Berlin, one day after their coalition committee consultations on a major package of reforms. Germany's ruling coalition has agreed on sweeping reforms, Chancellor Friedrich Merz said, a breakthrough aimed at reviving the struggling economy and countering the rise of the far right. (Photo by Tobias SCHWARZ / AFP via Getty Images)