Germany's governing coalition under Chancellor Friedrich Merz has successfully passed two significant pieces of legislation, securing a controversial pension reform and a new law aimed at substantially increasing the size of the country's armed forces. The votes, held in the Bundestag, represent a critical test of unity for the fractious coalition and signal a major policy shift in response to domestic and international pressures.
Key Takeaways
- Germany's parliament approved a pension package that locks in current levels until 2031 and expands benefits for mothers.
- A new military service law was passed to boost the number of active soldiers from 183,000 to 260,000 by 2035.
- The pension bill overcame significant internal opposition from younger conservative lawmakers concerned about long-term costs.
- The military expansion is framed by the government as a necessary response to the threat posed by Russia.
Pension Overhaul Overcomes Internal Dissent
Chancellor Friedrich Merz secured a crucial victory as the Bundestag approved his government's pension reform bill with 319 votes, achieving the absolute "chancellor majority" he had sought. The outcome solidifies Merz's authority over a coalition that holds only a narrow 12-seat majority in the parliament.
The legislation faced a serious challenge from within the conservatives' own youth faction, which controls 18 votes. These younger lawmakers argued that the measures would place an unsustainable financial burden on future generations. However, the final vote count indicates the bill passed without needing support from opposition parties.
Details of the Pension Package
The newly passed reforms introduce several key changes to Germany's pension system. A central element is the stabilization of current pension levels, which are now guaranteed not to fall below their present rate until 2031.
The 'Mother's Pension' Expansion
A significant component of the reform is the expansion of the so-called "mother's pension." This measure provides payments to women who took time out of the workforce to raise children. The law extends the credited child-rearing time for children born before 1992, making three years of child-rearing countable for all mothers, regardless of their child's birth year.
The financial implications are substantial. The government projects that the costs associated with these changes will rise to €5 billion from 2027 and then level out to an estimated €4 billion annually thereafter. The package also includes provisions to boost occupational pensions and allow individuals working past retirement age to earn more without tax penalties.
Germany Moves to Rebuild Military Strength
In a separate but equally significant move, German lawmakers approved a controversial new military service law. The plan is a direct response to growing geopolitical instability and is designed to dramatically increase the size and readiness of the German armed forces, known as the Bundeswehr.
Bundeswehr Expansion Goals
- Increase active soldiers from 183,000 to 260,000 by 2035.
- Establish a reserve force of at least 200,000 soldiers.
- Introduce more lucrative incentives for voluntary military service.
The government has stated that the military expansion is essential to counter the security threat posed by Russia. Under the new law, the government hopes to attract more recruits through an enhanced voluntary service model. However, the legislation includes a provision that could see the reintroduction of mandatory conscription, which was abolished in 2011, if enlistment targets are not met.
New Requirements for Young Germans
The law introduces new obligations for the nation's youth. All men born in Germany after January 1, 2008, will be required to undergo medical checks to assess their fitness for service. Furthermore, all 18-year-old men and women will receive a request to formally declare their willingness to serve in the military. While both genders will be asked, only men are legally obligated to respond to the request.
This policy brings Germany in line with other European nations, such as France and Poland, which have also taken steps to bolster their military capabilities in recent years.
Economic and Social Headwinds Persist
These major policy decisions come as Germany grapples with a complex mix of economic data and social challenges. While the government pushes forward with its agenda, the country faces ongoing pressures from multiple fronts.
On the economic front, recent data from the Federal Statistical Office showed a surprising 1.5% month-on-month increase in manufacturing orders for October 2025. This positive result was largely driven by a massive 87.1% jump in the "other transport equipment" category, which includes military vehicles, following a major contract. However, orders for intermediate and consumer goods declined, painting a mixed picture of the industrial sector's health.
Meanwhile, a long-term study by the University Medical Center Hamburg-Eppendorf highlights the lingering mental health struggles among Germany's youth. The study found that 22% of young people report a reduced quality of life, a figure seven points higher than before the pandemic. Many young Germans expressed feeling burdened by concerns over war (70%), terrorism (62%), and economic uncertainty (57%).
