Germany’s Economic Affairs Minister Katherina Reiche says her country’s next generation will be poorer than the present one unless Germans started to work more hours. Protection against workplace dismissals needs to be relaxed, she said.
In an interview with news outlet t-online published December 21, Reiche described Germany’s stagnating economy as a “very serious” situation.
The country needed “a truly comprehensive reform programme” if it is to avoid making the next generation poorer.
“For the first time since the founding of the Federal Republic of Germany, we can no longer keep the promise of prosperity and advancement that the next generation will be better off than this generation”, Reiche warned.
“Exports have made Germany strong”, but now other countries are taking the place of German manufacturers, she said.
Meanwhile, Germany faced “structural problems with regard to demographic change, the labour market, social security systems and high energy costs”.
To restore growth, Reiche said the Germany should adopt pension reforms and raise the retirement age. She said she supported the creation of a new pension commission to provide an objective analysis and solutions.
Annual working hours in Germany are 25 per cent lower than in the United States, Reiche noted.
Germany needed to increase its overall working time, which would require tax incentives and expanded childcare to shift workers from part-time to full-time roles.
When it comes to workplace protections against dismissal, Reiche suggests these should be stronger safeguards for lower earners, who face greater difficulties finding new employment. High earners, such as employees on annual salaries above €300,000, should be easier to dismiss, she said, noting Denmark had taken this approach.
She criticised companies for retiring skilled workers early amid labour shortages, and opposed raising inheritance taxes.
On energy policy, Reiche also said she was worried about offshore wind, after two tenders for wind farms in 2025 drew no bidders. She said the government was instead working on new, smaller tenders.
She also criticised the current mandate that 65 per cent of new heating systems use renewables, a move which effectively has required installing heat pumps. She called for technology-neutral options instead, including efficient gas systems which could be easily adapted to hydrogen or biomethane. Local heat planning could then guide decisions, with continued subsidies for renovations.
Finally, Reiche noted tensions had appeared in the CDU-SPD coalition. She said the coalition agreement formed the basis for her party’s aims but the ceiling for the SPD’s. “It is imperative that we raise this ceiling together,” she declared.
Most recipients of the German Bürgergeld (citizen’s stipend) are not actively looking for work. https://t.co/M0Z4C5xea9
— Brussels Signal (@brusselssignal) December 4, 2025
