Germany's Merz hails health reform deal as coalition under pressure

German Chancellor Friedrich Merz on Wednesday hailed planned reforms of the health insurance system as proof that his unpopular coalition government can still deliver results. Merz had come under growing pressure as he had struggled to deliver on his promises of sweeping reforms and a revival of Germany's stagnant economy.

The cabinet on Wednesday signed off a framework for Germany's 2027 government budget, and Merz said reforms of the pension system would be next. It was known that health insurance expenses had risen steadily in Germany as the country ages and costs for care rise.