A heated debate has emerged in Germany regarding proposed changes to the nation’s pension system and workforce participation, following remarks from Minister for Economic Affairs, Katarina Reiche (CDU), suggesting Germans may need to work “more and longer.
Sören Pellmann, leader of the Left Party parliamentary group, sharply criticized Reiche’s statements, characterizing them as “part of an increasingly aggressive campaign by the CDU and employers against the majority and the welfare state”. He alleged Reiche’s recommendations were a prelude to pension cuts, extended working hours, increased exploitation of workers and reductions in social provisions, echoing aspects of a potential “Agenda Merz 2030” plan. Pellmann also pointed to the strain on healthcare and pension insurance systems, arguing that this stems from the CDU and SPD’s failure to ensure wealthier individuals and corporations contribute appropriately to their funding. He urged Reiche to address long-standing deficits instead of lecturing the public. He further highlighted issues preventing workforce participation, including a lack of educational opportunities and limited access to childcare, forcing many women into part-time employment. He also cited the significant number of unpaid overtime hours – approximately 1.2 billion in the past year – and the prospect of poverty-level pensions for many.
From the AfD, Gerrit Huy, the parliamentary group’s spokesperson for labor market policy, expressed concern over the lagging development of work productivity, attributing it to insufficient investment in rationalization and innovation. She believes this is the “essential key to stabilizing and improving our pensions”. Huy also criticized Reiche for what she perceived as scapegoating working individuals and called for her to demonstrate tangible solutions. She further emphasized the reduction in potential workforce volume due to approximately five million individuals not working sufficiently or not at all, with four million among them receiving government assistance despite numerous vacant positions. The high rate of part-time employment, particularly among women and late entry into vocational training were also cited as contributing factors, with Huy advocating for prioritizing working parents in childcare placement and addressing the average age of apprenticeship commencement, which currently stands at 20.
The current coalition government is now navigating a complex discussion surrounding a new pension policy, with Sebastian Roloff, spokesperson for the SPD’s economic affairs, deeming Reiche’s approach misguided. While acknowledging the need for increased workforce participation, Roloff argued against a broad mandate for raising the retirement age. He favors attracting skilled workers and motivating older employees to remain in the workforce through incentives rather than coercion, proposing measures like tax reliefs and more flexible retirement options – strategies previously outlined by the former governing coalition.