Merz warns Germans of decline in real incomes in coming years

German Chancellor Friedrich Merz warned German residents of a decline in real incomes in the coming years, BelTA reports, citing Bild.

According to him, German citizens will have to spend an increasing portion of their income on healthcare and elderly care.

Merz cited the aging of society and rising costs of social programs as reasons for this. Germany's healthcare system already faces billions of euros in deficit. A new budget gap of at least four billion euros is expected in 2026. Authorities are discussing increasing contributions and even partially eliminating benefits.

The Chancellor also proposed revising the country's pension system. Instead of a fixed retirement age of 67, he proposes taking into account the length of service. "Someone who started working at 17 and worked for 50 years shouldn't retire at the same age as someone who started their career at 30," Merz opined.