Germany's SPD Unveils Sweeping Reforms for Pensions, Healthcare, and Civil Service

Germany's SPD Unveils Sweeping Reforms for Pensions, Healthcare, and Civil Service

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SPD proposes health levy on all income types - Germany's SPD Unveils Sweeping Reforms for Pensions, Healthcare, and Civil Service

Germany's Social Democratic Party (SPD) has revealed a series of reforms targeting healthcare funding, pensions, and civil service appointments. The proposals include a new levy to finance news, expanded pension insurance, and stricter rules on public sector hiring. Party leaders claim the changes will create a fairer system for workers and retirees alike.

Support for the pension reform appears strong, with polls showing 81% of the public backing mandatory inclusion for officials, the self-employed, and elected representatives.

The SPD's news plan centres on a new levy designed to cover all income types, including wages, capital gains, and rental earnings. Officials describe it as 'fair and earmarked', intended to replace part of the existing health insurance contributions. The goal is to broaden the pool of contributors while reducing traditional payroll deductions.

On pensions, the party wants to extend mandatory insurance to civil servants, self-employed workers, and parliamentarians. This move follows long-standing public debate over unequal pension provisions. The SPD has also promised to keep the pension level at a minimum of 48% beyond 2031, ensuring retirees continue to share in wage growth.

In the civil service, the party proposes limiting new tenured appointments to roles with 'sovereign duties'. This would shrink the number of permanent officials, though exact figures on current exclusions from pension insurance remain unclear. Implementation details for all reforms have yet to be finalised.

The SPD's plans would reshape how Germany funds news and pensions while tightening civil service rules. If passed, the reforms would widen the tax base for social contributions and standardise pension coverage. Public backing for key measures suggests broad demand for change, but specifics on timing and execution are still pending.

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