German economy minister calls for longer working hours, sparking debate

German Economy Minister Katharina Reiche has argued that Germans must work longer and more.

In an interview with the Frankfurter Allgemeine Zeitung, the CDU politician said, “Demographic change and increasing life expectancy make it unavoidable: working life must be extended.”

“In any case, if we only work for two-thirds of our adult lives and spend one-third in retirement, it won’t work in the long run,” said Reiche, arguing that too many people have unfortunately “refused to accept the demographic reality for too long.”

Arguing that Germans “must work more and for longer,” Reiche noted that while there are many employees in physically demanding jobs, there are also many who “want to and are able to work longer.”

“In an international comparison, Germans work little on average,” Reiche criticized, noting that companies report their employees in the US work 1,800 hours a year, but only 1,340 hours in Germany.

The reforms outlined in the coalition agreement will not be sufficient in the long term. “The social security systems are overloaded. The combination of non-wage labor costs, taxes, and levies will make labor in Germany uncompetitive in the long run,” she claimed.

On the other hand, these statements drew criticism from the “social” wing of the CDU. Christian Bäumler, deputy chairman of the Christian Democratic Employees’ Association (CDA), said he considered Reiche to be an “outsider” to the federal government.

“Anyone who, as Economy Minister, fails to recognize that the proportion of part-time employees in Germany is high and that the average annual working time is therefore low, is in the wrong job,” Bäumler said, arguing that Reiche’s demands have no basis in the coalition agreement.

The Social Association of Germany (SoVD) also voiced its criticism. SoVD board chairwoman Michaela Engelmeier said that a possible principle that people could work longer “must not lead to a covert increase in the retirement age.”

The German Trade Union Confederation (DGB) also warned against raising the retirement age. “For good pensions, more money needs to flow into the income side of the pension insurance system,” said DGB board member Anja Piel.

Piel called for tasks belonging to society as a whole, such as mothers’ pensions, to be financed from tax revenues, not from the pension fund.

Meanwhile, the president of the employers’ association (BDA), Rainer Dulger, supported the minister. “Economy Minister Reiche is speaking plainly, and that is a good thing. Those who react with outrage are denying reality,” Dulger told the dpa.

Arguing that the federal government is beginning to face the facts, Dulger suggested that those who bury their heads in the sand in the face of demographic change are “not living up to their responsibility for future generations.”

“Germany must work more so that our prosperity can continue tomorrow,” Dulger warned.

In the interview, Reiche also warned that the economic slowdown will continue. “When some economic research institutes recently raised their growth forecasts, I deliberately did not join in this chorus of praise. After the early export boom in the spring, the economy could cool down again,” the minister said.

Suggesting that higher tariffs could hit the German economy, the minister stated, “Therefore, we must continue to do everything we can to ensure that the European Commission reaches a good negotiated result with the US government.”

Meanwhile, the popularity of the current federal government, led by Chancellor Friedrich Merz (CDU), continues to decline.

According to the latest Insa poll for the Bild newspaper, 56% of Germans are dissatisfied with the chancellor’s work, while 31% are satisfied. At the beginning of June, the proportion of dissatisfied voters was 45%.

When asked about the federal government’s overall performance, 58% expressed dissatisfaction. This is the highest figure since the coalition took office.