Merz Talks About the Issue of Pension Reform: "Can't We Afford It?"
Merz said the coalition will move quickly as the panel seeks to stabilize pensions and limit future contribution hikes.
- Germany's coalition government took office over a year ago with pledges to reform the sluggish economy, but has become unpopular due to perceptions of achieving little.
- A government-mandated panel proposed stabilizing the pension system by introducing market investments and raising the retirement age in line with life expectancy starting in 2031.
- The aim is to prevent pension levels from falling and avoid a big long-term increase in the pension contribution, which currently stands at 18.6% of gross wages.
78 Articles
78 Articles
The panel has delivered what previous governments have failed for decades. Chancellor Friedrich Merz could now become a real reformer – if he has the necessary enforcement power.
The German government is working on an in-depth reform of its social system. A committee that has set out on an in-depth overhaul of pensions presented its conclusions on Tuesday, 23 June. The coalition in power intends to implement all the proposals.
Chancellor Merz and Labour Minister Bas have agreed to fully implement the proposals of the Pensions Commission. An important signal from the political centre, however, will cost the struggling coalition a lot of strength. But now political courage counts.
German Chancellor Friedrich Merz has announced a full implementation of 33 pension reform proposals.
Germany eyes working lives beyond age 67 in pension reform plan
BERLIN -- Germany will raise its retirement age gradually beyond 67, abolish early retirement and expand compulsory pension contributions under a set of new recommendations backed by Chancellor Friedrich Merz on Tuesday.
Government wants to implement the 33-point package in full, with higher contributions planned, a later retirement and a capital pension.
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