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POLITICS

Köhler calls for a new German reform push

German President Horst Köhler on Tuesday called for Germany to engage in further reform and modernization of the economy and society.

Köhler calls for a new German reform push
Photo: DPA

“We shouldn’t disparage what we’ve already achieved or turn back at all,” Köhler said on Tuesday in his third ‘Berlin Talk’ – a type of state of the nation address – at the Bellevue Palace. “Instead we should heartily continue on the path that’s proven to be right,” he said.

Köhler praised former Chancellor Gerhard Schröder’s Agenda 2010 reform programme which he said had provided 1.6 million Germans with jobs, and suggested an Agenda 2020 program to continue overhauling the country.

Growth shouldn’t be perceived as threatening, Köhler said. “It makes the world better, and right now the Germans are called on to make the world better and we can do it with good business,” he said.

But businesses need to act as good examples, he continued, citing recent corporate spying and tax evasion scandals. “Here, the rich, beautiful and powerful are not allowed to run red lights,” he said.

In his previous national addresses, Köhler has criticized the German school system, and this time he suggested that businesses should invest in education for the future of the economy.

German businesses need more qualified employees, which means the country needs to engage a clever immigration policy to win talent, the president said. This means naturalization and the right to democratic participation for those who choose to integrate and want to stay long-term.

Köhler’s call for changes in attitude toward immigration also counts for education, he said. “It’s shameful how often someone’s ancestry burdens their future in our education system,” he said.

POLITICS

Germany’s Scholz rejects calls for later retirement in Labour Day message

German Chancellor Olaf Scholz (SPD) has rejected calls for later retirement in a video message for Labour Day published on Wednesday.

Germany's Scholz rejects calls for later retirement in Labour Day message

“For me, it is a question of decency not to deny those who have worked for a long time the retirement they deserve,” said Scholz.

Employees in Germany worked more hours in 2023 than ever before: “That’s why it annoys me when some people talk disparagingly about ‘Germany’s theme park’ – or when people call for raising the retirement age,” he said.

Scholz also warned of creating uncertainty due to new debates about the retirement age. “Younger people who are just starting out in their working lives also have the right to know how long they have to work,” he said.

Scholz did not explicitly say who the criticism was targeted at, but at its party conference last weekend, the coalition partner FDP called for the abolition of pensions at 63 for those with long-term insurance, angering its government partners SPD and the Greens.

Scholz saw the introduction of the minimum wage nine years ago – and its increase to twelve euros per hour by his government – as a “great success”. “The proportion of poorly paid jobs in our country has shrunk as a result,” he said.

READ ALSO: EXPLAINED: Is it worthwhile to set up a private pension plan in Germany?

However, he said there were still too many people “who work hard for too little money,” highlighting the additional support available through housing benefit, child allowance and the reduction of social security contributions for low earners.

“Good collective wage agreements also ensure that many employees finally have more money in their pockets again,” he added. 

And he said that the country wouldn’t “run out of work” in the coming years.

“On the contrary! We need more workers,” he said, explaining that that’s why his government is ensuring “that those who fled to us from Russia’s war in Ukraine get work more quickly.”

Work means “more than making money,” said Scholz. “Work also means: belonging, having colleagues, experiencing recognition and appreciation.”

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