Germany's governing parties agree on a pension reform

German Chancellor Angela Merkel, right, takes a selfie with a visitor prior to a memorial service for the 30th anniversary of the fall of the Wall in ...
German Chancellor Angela Merkel, right, poses for a photo with visitors prior to a memorial service in the chapel at the Berlin Wall Memorial in Berli...
German Chancellor Angela Merkel delivers a speech during a memorial service in the chapel at the Berlin Wall Memorial in Berlin, Germany, Saturday, No...

German Chancellor Angela Merkel, right, takes a selfie with a visitor prior to a memorial service for the 30th anniversary of the fall of the Wall in ...

German Chancellor Angela Merkel, right, poses for a photo with visitors prior to a memorial service in the chapel at the Berlin Wall Memorial in Berli...

German Chancellor Angela Merkel delivers a speech during a memorial service in the chapel at the Berlin Wall Memorial in Berlin, Germany, Saturday, No...

BERLIN (AP) — Germany's governing parties have agreed to reform the country's pension system, setting aside an ideological dispute that had threatened to unravel the coalition government.

The head of German Chancellor Angela Merkel's center-right Christian Democratic Union said Sunday that parties had found common ground "after long negotiations" on the question of topping up the pensions of low-paid people who have worked for at least 35 years.

Annegret Kramp-Karrenbauer told reporters in Berlin that recipients would be means-tested, a key demand of her party.

Malu Dreyer, interim leader of the center-left Social Democrats, said the agreement would particularly benefit women.

Senior Social Democrats had warned that without a compromise on their key project, it would be difficult to keep the so-called 'grand coalition' going until the next national election scheduled for 2021.