Germany scraps civil-service pensions in radical pension reform push
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Germany's pension reform sparks fierce backlash before vote
Follow-upGermany scraps civil-service pensions in radical pension reform push
Germany proposes scrapping early retirement to save 9.5 billion annually
Follow-up
Germany’s ruling coalition is racing to finalise a sweeping pension reform before the summer recess, with Arbeitsministerin Bärbel Bas (SPD) proposing the abolition of civil-service pensions and a radical cut in the number of public-sector employees whose generous payouts have become politically indefensible. The plan, due to be presented next week, would fold all state employees into the general pension system, a move the Finance Ministry estimates could save €12–15 billion annually by 2030 .
Bas’s proposal comes as the Pension Commission prepares to publish its long-awaited recommendations on 16 June, but the SPD has already broken ranks with its coalition partners by calling for the immediate scrapping of the Beamtenpension. “The current system is no longer justifiable,” Bas told the *taz* on Monday. “We need to end the special treatment of civil servants and bring fairness to the pension system.” The plan would affect roughly 2.1 million current and former Beamte whose pensions are funded entirely by taxpayers, unlike the pay-as-you-go system for private-sector workers .
Finance experts welcomed the move but warned of political headwinds. Bernd Raffelhüschen, professor of financial economics at the University of Freiburg, told *Welt* that abolishing widows’ pensions—another coalition target—would only yield long-term savings if paired with a mandatory pension-splitting scheme to ensure surviving spouses retain financial independence. “This is not a reform that quickly lowers spending,” Raffelhüschen said. “It’s the right path, but we must proceed cautiously” .
The CDU/CSU opposition accused the government of “social experimentation.” Carsten Linnemann, the CDU’s pension spokesman, told the *Tagesspiegel* that the coalition’s timetable—decisions before the summer break—risks rushed legislation that could unravel within months. “Citizens judge governments by results, not by the number of bills they pass,” Linnemann said .
Across the EU, demographic pressures are forcing similar debates. France’s Conseil d’orientation des retraites raised its long-term deficit forecast on Monday, citing falling birth rates and warning that the pension system’s imbalance will persist until at least 2045 . In Portugal, economist Jorge Bravo, appointed by the government to study social-security sustainability, told *Público* that Chega’s demand to lower the retirement age would either slash benefits or require higher taxes, undermining the labour-market reforms the far-right party claims to support .
With the coalition’s polling lead evaporating, Bas’s pension gambit is as much about shoring up the SPD’s left flank as it is about fiscal prudence. Yet the political cost of dismantling a century-old privilege could yet derail the entire reform package before the Bundestag’s summer recess.
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