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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Photorealistic depiction of pension commission delivering 33 recommendations to Chancellor Merz and Minister Bas in a German government office.
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Pension commission delivers 33 recommendations to Merz and Bas

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The pension commission has presented its 33 proposals on old-age provision. The recommendations will be handed over to Chancellor Friedrich Merz and Labor Minister Bärbel Bas on Tuesday.

The German government's pension commission will present its proposals for reforming old-age security on June 23. The original date had been June 29.

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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.

The federal government wants to pass a pension package by the end of the year. The capital-funded supplementary pension is set to start from 2028. A new study warns of economic damage.

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Chancellor Friedrich Merz and Labor Minister Bärbel Bas announced Tuesday morning that all 33 recommendations of the pension commission will be fully implemented. The package is to be turned into law quickly.

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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The Social Democrats presented a package for higher pensions in Visby on Thursday evening, aimed at people who started working early and in strenuous jobs.

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