In Germany, the debate over raising the retirement age has intensified again amid an aging population, a labor shortage, and growing pressure on the state pension system. According to German media reports, an expert commission established by the federal government may discuss a scenario involving a gradual increase in the retirement age to 70.
A gradual increase in the retirement age is already underway in Germany. Under a previously adopted reform, the standard retirement age for people born in 1964 and later is set to be 67. This transition is being implemented in phases and is expected to be completed by 2029–2031.
The new debate stems from the fact that current measures may prove insufficient. Germany’s pension system operates on a pay-as-you-go basis: current contributions from workers fund payments to current retirees. As the population ages and the workforce shrinks, the burden on the budget and working citizens is growing.
The Bundesbank previously warned that the government’s current proposals do not fully address the pension problem. Among possible measures, the German central bank cited linking the retirement age to life expectancy and tightening restrictions on early retirement.
For the German economy, the issue of pensions is becoming one of the key structural challenges. Reuters previously reported that by 2030, the country’s workforce could shrink by 6.3 million people compared to 2010 levels, which would put pressure on economic growth and the ratio of workers to retirees.
However, raising the retirement age to 70 remains a highly sensitive political issue. Labor unions and some politicians point out that not all professions allow people to work until that age, especially when it comes to manual labor, industry, medicine, caregiving, transportation, and construction. Critics also warn that a formal increase in the retirement age could lead to a rise in hidden poverty among the elderly if they are unable to continue working but are forced to retire early with reduced benefits.
Supporters of the reform believe that without extending working life, Germany risks facing growing pension deficits, increased budgetary subsidies, and a greater burden on younger generations. In their view, the country needs not only tax incentives for later retirement but also a profound restructuring of the labor market for older workers.
For the labor market, this means that pension reform cannot be limited to simply changing the retirement age. Germany will have to develop retraining programs, flexible employment, part-time work for older workers, measures to prevent occupational burnout, and the adaptation of workplaces to the age of employees.
Industrial production in Germany fell by 0.7% in March compared to the previous month, according to the country’s statistics office. Analysts had expected industrial production to rise by 0.5% on average, according to Trading Economics.
According to revised data, the figure fell by 0.5% in February, whereas a 0.3% decline had previously been reported.
Output of consumer goods fell by 1.9% in March, while output of capital goods declined by 1.6%. Meanwhile, production of intermediate goods rose by 0.8%.
Production in the machinery sector decreased by 2.7%, and the energy sector saw a 4% decline. Meanwhile, construction output increased by 1.9%, and automotive production also rose by 1.9%.
On an annual basis, industrial production in Germany fell by 2.8% in March, following a 0.2% decline the previous month.
Amid an industrial downturn and challenges in the automotive sector, Germany is indeed accelerating the reorientation of some of its production capacity toward defense products; however, this does not mean a complete abandonment of the automotive industry, but rather a significant strengthening of the defense-industrial sector. The Wall Street Journal reports on this, and other international media outlets have previously confirmed specific examples of this shift.
According to the WSJ, Berlin is attempting to utilize idle capacity, engineering expertise, and the workforce of traditional industries—primarily the automotive sector—to expand the production of defense-related goods. The newspaper links this shift to the industrial downturn, rising defense spending in Germany and Europe, as well as heightened security threats amid Russia’s war against Ukraine and Europe’s declining confidence in long-term U.S. guarantees.
Part of this trend has already been confirmed at the level of specific companies. For instance, Reuters previously reported that Rheinmetall intended to repurpose two of its automotive plants in Germany for primarily defense production, retaining only a portion of civilian output. Additionally, Volkswagen is exploring the possibility of using its site in Osnabrück to manufacture military equipment, though it emphasized that no final production decisions have been made yet.
Another example is the negotiations regarding the potential production of components for the Iron Dome air defense system at one of Volkswagen’s German plants. However, Reuters separately noted that the automaker itself ruled out the production of weapons per se and spoke only of exploring options for utilizing the facility and producing components.
At the same time, pressure on the German auto industry is mounting. Reuters reported in February that nearly half of the auto suppliers surveyed were cutting jobs in Germany, and the industry association VDA described the situation as a crisis. Against this backdrop, the defense sector is becoming one of the few growing markets with a long-term order horizon for some manufacturers.
An additional factor has been the sharp intensification of Germany’s own defense policy. Following changes to budget rules and an expansion of borrowing capacity, Berlin has gained the leeway to significantly increase military spending in the coming years. Reuters previously reported that Germany’s total defense spending could rise from €95.1 billion in the 2025 draft budget to €161.8 billion by 2029, while the total volume of potential borrowing for defense in 2025–2029 was estimated at €380 billion.
auto industry, CRISIS, DEFENSE SECTOR, GERMANY, MANUFACTURING, reorientation
The results of a public opinion sociological survey conducted in March 2026 by the research company Active Group in cooperation with the information and analytical center Experts Club indicate a consistently high level of positive attitude among Ukrainians toward Germany. In total, 77.4% of respondents evaluate the country positively, while a negative attitude was recorded in only 3.5% of those surveyed. Compared to August 2025, the indicators have practically not changed: positive assessments increased slightly (from 76.7%), while negative ones even decreased somewhat (from 4.0%).
The structure of responses demonstrates the dominance of a stable positive perception. The share of those who chose the option “completely positive” is 32.9%, while “mostly positive” accounts for 44.5%. This means that the overwhelming majority of respondents are not just inclined to evaluate Germany positively, but do so confidently and without significant reservations.
At the same time, the share of neutral assessments stands at 18.4%, which is a moderate indicator and свидетельствует о достаточно сформированном отношении к стране. Negative assessments remain minimal: 2.8% of respondents chose the option “mostly negative,” and only 0.7% selected “completely negative.” This level of negativity is one of the lowest among Ukraine’s key international partners.
The stability of the indicators over time confirms that attitudes toward Germany have a long-term character and are not subject to significant fluctuations under the influence of short-term factors. Unlike some other countries, where an increase in polarization or a shift in evaluations is observed, in the case of Germany public opinion remains consolidated.
From an analytical point of view, this indicates a high level of trust and a stable image of the country in Ukrainian society. The combination of a significant share of “completely positive” and “mostly positive” responses indicates that Germany is perceived not only as an important partner, but also as a reliable and predictable participant in international processes.
“In the case of Germany, we see one of the highest levels of stable positive perception among all countries. This means that the assessment is formed not situationally, but on the basis of long-term experience of interaction and clear ideas about the role of this state. Such indicators testify to a high level of trust in society,” said Oleksandr Pozniy, Director of the research company Active Group.
Overall, the results of the study show that Germany occupies a special place in Ukrainians’ perceptions of international partners. The combination of a high level of positivity, minimal negativity, and stable dynamics indicates a formed and устойчивый positive image which, unlike other countries, is almost not subject to fluctuations in the short term.
According to a study conducted by the Experts Club information and analytical center based on data from the State Customs Service, Germany is among the top three largest trading partners of Ukraine, with a total trade volume exceeding $9 billion. A significant volume of imports of German goods creates a negative balance, which indicates high demand for German industrial products.
The study was presented at the Interfax-Ukraine press center; the video can be viewed on the agency’s YouTube channel. The full version of the study can be found via the link on the Experts Club analytical center’s website.
ACTIVE GROUP, EXPERTS CLUB, GERMANY, Pozniy, SOCIOLOGY, SURVEY, UKRAINE, URAKIN
Die Ukraine hat in den letzten Jahren ihre Präsenz auf dem deutschen Markt für gefrorene Himbeeren deutlich ausgebaut, der zusammen mit Polen nach wie vor ein wichtiger Absatzmarkt für ukrainische Beeren ist und die Exporttrends für die Branche bestimmt, berichtet der Verband „Yagidnyctvo Ukrainy“.
Nach Angaben des Verbandes führte das Wachstum des ukrainischen Angebots zuvor zu einem Rückgang der durchschnittlichen Importpreise in Deutschland um fast die Hälfte.
Gleichzeitig kam es 2025 aufgrund von Ernteeinbußen in der Ukraine, Polen und Serbien zu einer Verknappung auf dem europäischen Markt, was die Preise in Deutschland auf das Niveau von 2022 steigen ließ, wie der Verband feststellt und dabei die Sensibilität des Marktes gegenüber Produktionsausfällen bei den drei wichtigsten Lieferanten, darunter die Ukraine, betont.
The volume of tractor imports to Ukraine in January 2026 amounted to $33.3 million, which is 24.2% less than in the same month of 2025 ($43.9 million), according to statistics from the State Customs Service.
According to the published statistics, tractor imports decreased by 2.5 times compared to December last year.
Last month, tractors were imported mainly from China (31.2% of total imports of this equipment, or $10.4 million), the United States (13.3%, or $4.4 million), and Germany (11.8%, or $3.9 million), while last year China was also the leader ($9.34 million), Germany was second ($5.5 million), and the United States was third ($3.7 million).
According to statistics from the State Customs Service, last month $0.4 million worth of tractors were exported, mainly to Belgium (31.8%), while last year exports amounted to $0.56 million, with most supplies going to Zambia (41.4%).
As reported, the volume of tractor imports to Ukraine in 2025 reached $845.7 million, exceeding the 2024 figure by 7.9%. The main suppliers were the United States ($179.7 million), Germany ($145 million), and China ($142.8 million). Exports amounted to $6.6 million, compared to $5.4 million in 2024, and were mainly to Romania, Belgium, and Germany.
