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Merz Upbeat on State Backing for €46 Billion Tax-Break Package

Friedrich Merz at the Bundestag in Berlin.Photographer: Nadja Wohlleben/Getty Images

Chancellor Friedrich Merz said he’s confident Germany’s regional governments will back his €46 billion ($53 billion) package of tax breaks after progress toward settling a dispute over sharing the cost.

The plan needs approval from lawmakers in the Bundesrat, the upper house representing Germany’s 16 federal states. Many have voiced concern over the financial burden, warning that states and municipalities would be left covering around two-thirds of the total cost.