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CROSS-SPECTRUM

Merkus vows to trade poll popularity for sweeping welfare reforms

German Chancellor Friedrich Merz said he will forgo personal popularity to push ahead with welfare reforms aimed at younger citizens.

At an employers' association gathering in Frankfurt, Chancellor Friedrich Merz announced he is prepared to sacrifice his standing in opinion polls to implement overdue welfare changes that would improve prospects for younger Germans. He emphasized that his priority is setting the country on the right course rather than seeking popularity. Merz highlighted that Germany's pay-as-you-go retirement scheme is at least thirty years late and that temporary increases in pension contributions from both employees and employers will be necessary to address demographic shifts.

The remarks follow the resignation of the SPD labour minister on Monday, which has heightened uncertainty for Merz's coalition after recent state election losses and a dip in poll numbers. He framed the reforms as essential for restoring confidence in the nation's social safety net.

Why it matters

The reforms could reshape Germany's pension system and affect the economic prospects of younger generations.

How this story developed

  1. Oct 12 Bärbel Bas steps down as Germany's labor minister and SPD co-chair
  2. Oct 12 SPD will elect new leadership at its year‑end congress.

In this story

welfare reformpension systemyounger generationpopularityGermanyFriedrich Merzpay-as-you-gopension contributions
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