In a joint letter, 32 business associations asked both government parties to stop plans for a pension package in the Bundestag. In a letter to the leaders of the CDU/CSU and SPD parliamentary groups, which was made available to “Bild”, the association criticized that the pension plan was unsustainable and would cost an additional almost 480 billion euros by 2050. “The annual additional Bild increases compared to the current legal situation from 18.3 billion euros (2031) to 27 billion euros (2050),” the newspaper quoted from the letter.
The letter was signed by, among others, the large and foreign trade association BGA, the entrepreneurs’ association Gesamtmetall, the construction association ZDB, the trade association HDE, the association of family entrepreneurs, the mechanical engineering association VDMA, the taxpayers’ association and the Federal Association of Medium Enterprises (BVMW).
Federal Labor Minister Bärbel Bas (SPD) wants to stabilize pension levels in Germany in the billions. According to the coalition agreement, the figure should reach 48 percent by 2031. After that, it is expected to decline – but only gradually, which is why the government estimates costs in its plan will continue to rise.
The association wants an increase in the retirement age
The associations, which say they represent about 17 million employees, accuse the federal government of failing to implement pension policies and warn of the system’s collapse. The plan is generationally inappropriate and unaffordable. “What is particularly strange is that the pension commission, which is supposed to handle the long-term reorganization of the system starting in 2031, has not yet started work. The current law will effectively destroy its scope of action before it even meets,” the association criticized.
According to “Bild”, in the letter they advocate, among other things, a slight increase in the retirement age and higher deductions for early retirees.
