German Minister Friedrich Merz faces backlash over pension reform proposals

The coalition government led by Friedrich Merz and Thomas Klingbeil is pushing a broad reform agenda that has drawn criticism from trade unions and parts of the business community. Commentators compare the plan to the "Agenda 2010" reforms of the early‑2000s, noting similar opposition to changes perceived as insufficiently supportive of workers.

A government‑appointed expert commission is drafting the largest pension overhaul in years. Drafts suggest gradually raising the statutory retirement age to 68 in the early 2040s, to 69 in the 2050s and eventually to 70 in the 2060s, while also contemplating a modest cut to the replacement rate from 48 % to 46 % of average earnings. Proposals to reduce the maternity pension and to alter public‑sector contributions have also been discussed, prompting concern among retirees and younger workers alike.