Work requires increased effort and extended hours, as stated by Reiche
In response to demographic changes and the growing burden on social security systems, the German government is advocating for work extension and long-term reforms. The emphasis is on extending working lives and reforming social security sustainably to maintain the welfare state's stability and economic competitiveness.
Germany's Economy Minister, Katharina Reiche, has been a vocal proponent of these changes, calling for longer working hours. She argues that the current model of working only two-thirds of adult life followed by one-third in retirement is unsustainable. Reiche compares Germany unfavorably to countries like the US in terms of average annual working hours, suggesting that Germans must work longer and harder to reduce the overburdening of the welfare state.
The coalition agreement, as reviewed by institutional initiatives such as the Initiative for an Effective State, contains a strong will to enact broad state reforms, including those aimed at social security and demographic challenges. The coalition sees these reforms as a shared responsibility between the federal and state governments, with an emphasis on implementation and modernisation agendas to address long-term sustainability issues.
While some details are still under negotiation, the agreement and related political statements clearly reveal a consensus that the German social security system, strained by demographic aging, requires substantial reform. Extending working lives, possibly through increasing statutory retirement age or incentivizing longer labor participation, forms part of the policy arsenal, alongside addressing labor costs and tax burdens to keep labor competitive.
Criticism of these proposals has come from various quarters. Anja Piel, DGB board member, asserts that for good pensions, more income must come into the pension insurance. Michaela Engelmeier, SoVD board chairwoman, states that an employment insurance that includes civil servants and members of parliament can stabilize the pension system. The German Social Union (SoVD) has criticized the potential increase in retirement age through a possible credo that people could work longer.
Within her own party, Barley's proposals for increasing work hours and productivity have also been met with criticism. CDU deputy federal chairman Christian Bäumler has called her a foreign body in the federal government, while Bäumler argues that Barley does not realize that Germany has a high part-time quota and thus a low average annual working time.
Despite the criticism, the coalition's strategic approach in 2025 aims to mitigate demographic pressures and protect social welfare through labor market and institutional reforms. According to DGB, societal tasks such as the mother's pension should be paid from tax revenues, not from the pension fund. These points reflect the coalition’s commitment to addressing the challenges posed by demographic change and ensuring the long-term sustainability of the social security system.
[1] Initiative for an Effective State (2021). Coalition Agreement 2021: State Modernisation and Reforms for Long-term Sustainability. Retrieved from https://www.initiative-staat.de/en/coalition-agreement-2021-state-modernisation-and-reforms-for-long-term-sustainability/
[2] German Federal Government (2021). Coalition Agreement 2021: Building a Strong and Free Europe. Retrieved from https://www.bundestag.de/resource/blob/1432573/3ec04c0d5637d0a42c6d27f2d8445317/koalitionsvertrag-2021.pdf
- The German government, as part of their long-term reforms, is advocating for changes in the workplace-wellness sector, aiming to extend working lives and thereby prevent the unsustainable model of a short working life followed by a long retirement.
- Policies and legislation are being drafted to address demographic challenges and improve the health-and-wellness of the population, with a focus on work extension and social security reforms, as outlined in the coalition agreement.
- The general news is filled with debates about the proposed reforms in the social security system, including the potential increase in retirement age, as stakeholders discuss the best strategies to maintain economic competitiveness and ensure the sustainability of the welfare state.
