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Germany wrestles with problem of pension reform

Foreign funds will have a fight to access an estimated €40bn-a-year market

Germany's Social Democratic party is grappling with one of the most important socioeconomic issues of the day: how to support the huge future population of people in retirement.

Within Germany itself, the Social Democrats' opponents are fiercely resisting their proposals. The Bundestag, or lower house, passed the latter only after Germany's powerful unions forced a compromise on Chancellor Gerhard Schroder's party.

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