Overview
- The recommendation would shift pension indexation from wage growth to inflation, slowing future increases compared with current practice.
- The IMF also urges steeper deductions for early retirees to encourage longer working lives and ease pressure on the system.
- The proposals run counter to the coalition’s plan to keep the statutory pension level stable through 2031, intensifying the domestic policy dispute.
- Fiscal advice includes raising the wealth tax, closing inheritance‑tax loopholes, and considering higher property and alcohol taxes.
- The report forecasts roughly 0.2% GDP growth in 2025, about 1% in 2026 and near 1.5% in 2027, and it praises Germany’s debt‑brake reform as direction‑setting.