Friedrich Merz defends pension position and promises reforms

German Chancellor Friedrich Merz has defended his stance on the pension bill amid internal Union disputes. He stresses that the draft aligns with the coalition agreement and covers regulations until 2031. Nevertheless, he promises fundamental reforms for the period afterward.

Friedrich Merz, CDU leader and German Chancellor, defended his position on the government's pension bill in the ARD program 'Bericht aus Berlin.' 'What is in the pension bill draft is also in the coalition agreement as is,' he said, emphasizing that it currently concerns regulations until 2031. 'I support that we fundamentally change something in our pension system for the time after 2031.'

Merz addressed the critical young Union MPs, particularly the Junge Union, which rejects the pension package. He promised that a pension commission would be established this year to ensure the involvement of critics. The commission is to complete its work before the 2026 summer break, after which the legislative process will begin. As a way to clarify the 'step sequence,' he suggested a 'companion text' such as a resolution motion.

At the Deutschlandtag of the Junge Union in Rust, Merz had defended the bill against criticism from the young conservatives and warned against a race to the bottom on pensions. 'Yes, I will vote for this pension package with a clear conscience when it comes to a vote in the German Bundestag,' he stated there. He emphasized his responsibility to the entire country, not just one group. The basis is the coalition agreement, to which the Junge Union had agreed.

Merz spoke with SPD co-leader and Labor Minister Bärbel Bas after the Rust appearance to embed the pension package in a 'reasonable message.' The new provision system comprises three elements: statutory pension, company pensions, and private retirement savings, which must be reweighted. He rejected demands to amend the Haltelinie again and the calculation of 120 billion euros in follow-up costs from 2032. Instead, an agreement with the SPD provides for determining a new key figure after 2032, such as linking pension development to the inflation rate rather than wages. The Haltelinie is part of a comprehensive package including active pension, early-start, and mother's pension.

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