Winkel calls for smaller pension rise to fund BAföG

Junge Union leader Johannes Winkel proposes reducing the July 1 pension increase to 3 percent to finance the planned BAföG raise.

Johannes Winkel, head of the Junge Union, has called for reducing the July 1 pension increase from 4.2 to 3 percent. The freed-up funds should finance the planned BAföG increase and prevent cuts to Elterngeld. Winkel told Bild newspaper that all three benefits were agreed in the coalition contract, yet savings must be distributed fairly given the budget situation. He urged the black-red coalition under Chancellor Friedrich Merz to stand up for the younger generation. The pension adjustment rests on wage growth data from the Federal Statistical Office and stands at 4.25 percent for 2026. Government spokesman Stefan Kornelius and other Union politicians had already flagged financing reservations for social benefits.

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Politicians Manuela Schwesig and Markus Söder advocating for tax reform in the German parliament following the rejection of a relief premium.
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Politicians call for tax reform after Bundesrat rejects relief premium

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After the Bundesrat blocked the planned tax-free relief premium of up to 1,000 euros, leading politicians are urging a comprehensive income tax reform instead. Manuela Schwesig (SPD) and Markus Söder (CSU) described the premium as failed.

The SPD parliamentary group has opposed flat cuts to parental allowance. Family Minister Karin Prien of the CDU faces pressure to save 500 million euros.

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Die Linke has criticized the old-age benefits for Bundestag members as disproportionately high. It bases its claims on calculations by the Bundestag's Scientific Service.

Following backlash to his recent comments, Chancellor Friedrich Merz (CDU) assured no cuts to statutory pensions at a CDU event. Saxony-Anhalt Premier Sven Schulze (CDU) reiterated demands for pension reform to address East Germany's unique reliance on state pensions.

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Leading CDU politicians reject the SPD proposal to suspend the debt brake and demand a savings package from Finance Minister Lars Klingbeil (SPD). Tensions in the black-red coalition are rising as Klingbeil prepares the key points for the 2027 budget. The trigger is SPD parliamentary leader Matthias Miersch's push amid the ongoing Iran crisis.

CDU parliamentary group leader Jens Spahn has proposed that the SPD jointly develop a draft for income tax reform. The aim is to relieve small and medium incomes without public disputes.

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Economists on the scientific advisory board to the Stability Council forecast an excessive deficit of 4.25 percent for 2026. They urge the federal government to make more savings to avoid breaching EU debt rules.

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