Germany’s coalition reaches breakthrough on pension reform
Germany’s coalition government has agreed on a comprehensive pension reform package late on Wednesday night, bringing to an end weeks of bitter internal disagreement amongst the three governing parties.
The package combines a gradual rise in the statutory retirement age, expanded state subsidies for occupational pensions, and a new sovereign wealth fund seeded with €200 billion to stabilise the contribution rate over the coming two decades.
The Chancellor described the agreement as ‘historic’ and said it would safeguard the pension system ‘for at least one generation’. Opposition parties have criticised the package as insufficient to address demographic pressures.
The legislation will be submitted to the Bundestag before the summer recess.
