CAMPAIGNERS warned of increased homelessness risk as German Chancellor Friedrich Merz and his coalition partners presented a comprehensive reform package today.

The 34 measures include income tax cuts for low and middle-income families, pension system changes, tougher sick leave rules and a reduction in bureaucracy.

Mr Merz said the reforms aim to “strengthen ourselves so that we can live well in these new times,” amid criticism of his ruling coalition for failing to reach agreements.

The tax cuts would give an annual break of about €600 (£513.69) for a family with two working parents and two children.

The pension reform would gradually raise the retirement age in line with life expectancy.

And tougher sick leave rules would allow employers to request a doctor’s certificate from the first day of absence.

Welfare Association chief executive Joachim Rock warned that housing cost support would be cut under the plans, pushing recipients deeper into poverty.

“The risk of losing one’s home is increasing,” he said, warning that older people and families would be particularly affected.

Mr Merz appealed for public support, saying: “Join us; support us in carrying out the reforms that are now necessary.”