The German Bundesrat has approved Chancellor Friedrich Merz's €46 billion package of tax breaks and an investment booster aimed at revitalizing the country's economy. This marks the first major reform of corporate taxation in 15 years and is intended to make Germany more competitive and attractive for business. The initiative is supported by both the federal government and regional states, emphasizing a shift from increasing taxes to reducing them to stimulate growth. Additionally, Germany has reached an agreement with the European Commission on a multi-year fiscal plan that permits increased investment in the short term while committing to fiscal tightening in later years. The European Union has formally approved this multi-year fiscal strategy, which is seen as a pivotal element of Germany's broader economic recovery and competitiveness efforts.