After Bas Resignation, Merz Pushes for Major Pension and Labour Reforms

One day after Labour Minister Bärbel Bas resigned from both her cabinet role and her position as SPD co-leader, Chancellor Friedrich Merz (CDU) appeared at the annual employer conference of the Federal Association of German Employers (BDA) and made clear he intends to press ahead with what he calls the most extensive reforms in decades.

Pension Reform Pressure

Merz demanded that the new Labour Minister, Alexander Schweitzer (SPD), arrive at cabinet with a completed pension reform bill before the end of the year. The chancellor indicated the reform must proceed in full — without the exemptions the SPD had sought, particularly the preservation of the penalty-free retirement option after 45 contribution years. Merz argued: those who are healthy and fit should not retire early penalty-free, as it is neither fair nor affordable given demographic pressures.

Labour Market Flexibilisation

The chancellor also pushed for reform of Germany's working-time rules, advocating for a weekly maximum rather than a daily eight-hour cap. He cited international examples of compressed working weeks as evidence that longer individual shifts are compatible with work-life balance. The SPD and trade unions oppose the change.

Economic Backdrop

The BDA conference took place against a backdrop of mounting employer frustration. Around 177,000 industrial jobs were lost in Germany within a year, hitting the automotive, mechanical engineering and metals sectors particularly hard. Employer association president Rainer Dulger warned that the country needed decisions it could feel — not more stocktaking. The coalition has been in office about 17 months and the initial business euphoria has turned to frustration. More politics news.