Germany’s coalition reform package will not alone revive the economy, and home‑office arrangements are not being renewed, leaving labor‑market flexibility and urban real‑estate in flux

Executive summary: Germany’s black‑red coalition agreed on a reform package, but an editorial contends that politics alone will not renew the country and that home‑office arrangements are not being extended. Remote‑work policies affect productivity, corporate real‑estate strategies, wage negotiations, and the overall impact of the reform package on the economy.

Who is involved: The German federal government (black‑red coalition), policymakers, businesses, and workers across sectors.

Likely next: Continued debate over home‑office tax treatment and flexible‑work regulations, potential adjustments to the reform package based on economic data, and corporate reassessment of office space needs.

The Handelsblatt editorial notes that the newly agreed black‑red coalition reform contains many positive elements but argues that political measures by themselves cannot restart growth. It highlights that, despite the reform, home‑office policies are not being renewed, which limits one potential source of productivity gains. Consequently, the effectiveness of the reform will depend on how companies and workers adapt flexible‑work arrangements outside of direct government action.