Germany news: Reform row raises fears for Merz's coalition

Key Points:

• Chancellor Friedrich Merz's conservative CDU is intensifying pressure on coalition partner SPD to enact agreed pension and labor market reforms, threatening to withhold support for SPD-backed tax reforms, raising fears of coalition instability.
• Volkswagen's recent announcement to cut 50,000 jobs globally and scrap key labor agreements has drawn sharp criticism from IG Metall union, which condemned the move as disrespectful and unprecedented in VW's history.
• German President Frank-Walter Steinmeier reportedly intervened in the coalition dispute over care reform to prevent a political crisis, highlighting concerns about the government's stability amid ongoing disagreements.
• Large protests took place in Berlin against potential reinstatement of military service and increased defense spending, reflecting public resistance to military expansion amid government recruitment efforts.
• Germany's economic recovery shows signs of improvement but remains fragile, with businesses citing bureaucratic hurdles and ongoing labor market challenges despite a modest growth forecast upgrade.