Germany's Merz says he will prioritise welfare reform over popularity
EWG•German Chancellor Friedrich Merz said he was ready to risk his popularity to push through welfare reforms, saying Germany was at least 30 years late in overhauling its retirement system. He said pension contributions from workers and employers would have to rise temporarily to address demographic change.
1. Pension reform plans
Merz said he wanted to put Germany on the right course and offer younger people decent prospects, adding that he had no intention of becoming “the nation's darling.” He said the country was at least 30 years late in planning an overhaul of its pay-as-you-go retirement system and that workers' and employers' pension contributions would have to rise temporarily to accommodate demographic change.
2. Coalition uncertainty
Germany's labour minister from the centre-left SPD quit on Monday, adding to uncertainty around Merz's coalition after state election defeats last month and a slide in opinion polls.
