German Economy Minister Reiche says social systems under pressure
The Christian Democrat (CDU) politician said after a company visit in the western city of Essen on Thursday that a comprehensive - and critical - review of Germany's social systems is due in the autumn.
"They must deliver what the citizens expect from them: security and reliability. But we also know that reforms are needed," Reiche said.
German Chancellor Friedrich Merz has spoken of a "reform autumn." "There is really nothing to add to that," she said.
"Tipping point"
The coalition has agreed to set up various commissions after the lower house of parliament, the Bundestag, returns from its July-August break, not only to examine the social security systems but also to develop reform proposals, said Reiche.
She added that the reform of the social systems and the demographic imbalance is not solely an issue for the current government.
"The challenge we are facing is that the so-called tipping point is getting closer, and we must therefore actively address the question of how we can combine different employment histories, labour demand, and immigration into such a good concept that we can maintain labour productivity at a high level in the future," she said.
When asked whether the planned expansion of the mother's pension is still timely, Reiche said, "Measures that further burden the social security systems are indeed a challenge for our system." However, she noted that it is also primarily about individual workers.
Criticism of pension proposal
Reiche had sparked a broad debate with statements about increasing Germans' working life.
German Finance Minister Lars Klingbeil said on Wednesday that it was very clearly set out in the coalition negotiations that there would be no increase in the retirement age. He stated that calls "from the sidelines" do not help.
Reiche on tour
The minister visited the medium-sized family business Agathon in Essen, a world-leading manufacturer of chocolate moulds for large-scale industrial production.
The company relocated its headquarters from Bottrop to Essen at the beginning of the year and invested €15 million ($17.2 million) in the construction of a new production hall.
Prior to this, Reiche visited German polyurethane and polycarbonate producer Covestro in Leverkusen.
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