Germany's governing coalition agreed to subsidize energy prices for heavy industry over the next three years as it tries to breathe new life into a stubbornly slow economy that is weighing on Europe's performance.

Chancellor Friedrich Merz said he and other coalition leaders agreed Thursday evening to introduce an electricity price of about 5 euro cents (6 U.S. cents) per kilowatt hour starting Jan. 1, through 2028, to "support companies that use a lot of electricity and face international competition."