"The German government, a coalition of the conservative Christian Democrats (CDU); its Bavarian sister party, the Christian Social Union (CSU); and the center-left Social Democrats (SPD), will have to deal with difficult domestic policy issues in 2026. After grueling debates, the government passed its reform package for the state pension system through the Bundestag in December. The pension level is to remain stable until 2031, a commission will develop fundamental reforms to the system and submit proposals by mid-2026."
"In the 2026 budget, the government subsidy to compensate for pension losses amounts to a hefty 128 billion ($150 billion) around a quarter of the total budget. The pension commission is under pressure to develop truly practical proposals on an extremely complex issue. Raising the retirement age from 67 is on the cards. But some, like economics professor Jens Sudekum, suggest doing away with a fixed retirement age for everyone."
The coalition government of CDU, CSU and SPD passed a state pension reform package that keeps the pension level stable until 2031 and instructs a commission to propose fundamental reforms by mid-2026. The 2026 budget includes a 128 billion euro subsidy to compensate for pension losses, about a quarter of the total budget, increasing pressure for practical reform proposals. Options under consideration include raising the retirement age from 67 or removing a single fixed retirement age in favor of pensions based on years worked. Chancellor Friedrich Merz signaled openness to comprehensive reform. A new youth questionnaire will register skills and qualifications starting in early 2026.
Read at www.dw.com
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