Overview
- The coalition publicly agreed in principle on July 2 to raise the statutory retirement age beyond 67, link future rises to life expectancy, and introduce a mandatory capitalisation pillar to channel a portion of wages into invested accounts.
- Lawmakers plan a fast timetable: a framework law this summer to set the overall design and detailed legislation in the autumn with a target for final adoption by the end of the year.
- The package pairs roughly €10 billion in tax relief for low and middle incomes with higher levies on very high earners, including proposals to raise taxes on incomes above €250,000 to offset the cost.
- Proposals to liberalise the labour market include easing fixed‑term contract rules (for example, raising allowed renewals up to six over 48 months) and steps to cut bureaucracy and adjust sick‑leave rules.
- Key technical and political details remain unresolved — such as contribution rates for the capitalisation pillar, employer versus employee shares, legal design and union buy‑in — and the plan is framed as both a fiscal fix and a bid to boost the government's standing ahead of regional votes.