A dispute erupts in Germany's black-red coalition over the pension package: Young Union MPs sharply criticize the bill and threaten to block it. Chancellor Friedrich Merz signals understanding, while SPD politicians decry the debate as harmful to pension security. The draft is set to pass this year.
The Young Group within the Union parliamentary faction, comprising 18 members, has positioned itself against the planned pension bill. In a resolution obtained by SPIEGEL, it states: 'The draft is not approvable in its current form.' Critics see billions in follow-up costs after 2031 that are not covered by the coalition agreement and 'cannot be justified towards the young generation.'
The coalition agreement provides for stabilizing the pension level at 48 percent until 2031. However, the bill mentions a permanent increase of one percent beyond that. Chairman Pascal Reddig (CDU) spoke of a 'permanent billion-euro burden on the shoulders of the young generation.'
Parliamentary manager Steffen Bilger (CDU) referred to agreements in the cabinet resolution that go beyond the coalition agreement. CDU Economic Council General Secretary Wolfgang Steiger can 'very well understand' the concerns: 'The additional costs arising from 2032 would lead to either higher pension contributions or the need for even higher tax subsidies,' he told SPIEGEL, calling it 'poison for the economic location and state debt.'
Chancellor Friedrich Merz responded during a visit to Brandenburg: 'We will only set this until 2031.' From 2032, it would be open, and a comprehensive pension reform commission should be established this year. He acknowledged the criticism and emphasized the need to keep the pension system stable.
The SPD is annoyed. Deputy faction leader Dagmar Schmidt said: 'I assume that the CDU/CSU faction stands by what was also decided in the cabinet.' Uncertainty would be 'no good sign.' SPD faction leader Matthias Miersch reminded of the coalition agreement. At last week's coalition committee, it was confirmed to pass the package in 2024 so it can take effect on January 1, 2026. It includes the pension level safeguard and the mothers' pension as a CSU pet project. The first reading in the Bundestag is scheduled for this week.