A debate is intensifying in Germany concerning potential extensions to working lives, with the Social Democratic Party (SPD) sharply rejecting proposals put forward by Federal Minister for Economic Affairs, Katarina Reiche (CDU).
SPD parliamentary group deputy, Dagmar Schmidt, criticized Reiche’s suggestions as being “far removed from the lived realities of most people in Germany” arguing that many individuals already choose to work beyond the statutory retirement age. Schmidt emphasized the importance of protecting those unable to continue working, asserting that any extension of working lives for some would effectively constitute a reduction in pensions, a measure the SPD will not endorse.
Reiche had previously stated that extending working lives in Germany was “unavoidable” citing the fact that German workers typically work fewer hours annually than their counterparts in other nations. Schmidt challenged this argument, claiming Reiche was using misleading data regarding workload in Germany. She pointed out that overall economic activity had significantly increased since the mid-2000s, driven in part by a rise in part-time employment, particularly among women. Schmidt questioned whether all members of the conservative bloc supported policies that would necessitate extending working hours. She also highlighted that nearly half of German employees already work beyond their contractual hours, observing this as an indicator of workforce diligence and commitment.
Addressing the common argument linking increased lifespans with the need for extended working lives, Schmidt dismissed a broad application of this concept, noting that gains in life expectancy are disproportionately concentrated among higher-income earners. She concluded that such policies would, once again, negatively impact those least able to bear the burden.
The Federation of German Medium-Sized Businesses (BVMW) reacted cautiously to Reiche’s proposal. While acknowledging the necessity of accelerating economic performance, BVMW’s federal managing director, Christoph Ahlhaus, suggested alternative solutions to boost productivity. He advocated for reductions in corporate taxes and social security contributions, alongside the elimination of unnecessary bureaucracy, asserting that these measures would be more beneficial to the German economy than a protracted political deadlock surrounding extended working lives. The government, Ahlhaus argued, should focus on enabling companies to invest strategically in productivity improvements.