Chancellor Friedrich Mertz admitted that Germany ‘Lives over its potential for years’, while experts warn that the country will lead to disaster if it does not make it financial reforms.

The conservative leader caused a stir stating that the country can no longer afford the cost of the pension system, which has been launched Over 31% of GDP.

Mertz also warned of a “deep seasonal breakthrough” and the need for painful austerity measures to ensure that young Germans have prospects in the future.

Financial Advisor, Marcel FractherHead of Germany’s Institute of Economic Research, stressed that the government should face the 400 billion euro annual pension account, which is expected to increase in the next decade. These statements were made shortly after the report of Ministry of Economy, which described the German pension system dysfunctional and a “serious threat” for the economy, predicting that by the middle of the next decade there will be a pensioner for every two workers.

Economy Minister Katerina Rae washe agreed that there is a deep and urgent need for reform to be able to withstand pensions.

However, the Minister of Labor and Social Affairs; Burbel bassfrom the Social Democratic PartyHe described Mertz’s statements characterized, while German President Frank-Walter Steinmeier praised the welfare state as a “treasure” and “resource that made our country what it is”, recognizing that the “system cracks”.

This debate comes after the revelation that the German economy was shrinking for the second consecutive year in 2024. According to preliminary data from the federal statistical service, Europe’s largest economy decreased by 0.2%, continuing the downward trend in a similar decline in 2023.

The German economy has been affected by both external shocks and internal problems, such as bureaucracy and a lack of specialized workforce.