The head of the United Youth Group, Pascal Reddig, has spoken out in favor of postponing the vote on the black-and-red government’s pension package. “Perhaps the bill should be delayed to achieve reform and secure the border at the same time,” Reddig told the magazine. star. At the same time, he reiterated the opposition of young Union MPs to the current draft pension package. “We still see the need for changes to the bill and we do not consider the bill to be approved at this time.”
The black-and-red government cabinet, which also includes members of the Youth Group from the ranks of the Union, has actually approved the retirement package. This is now in jeopardy in the Bundestag as 18 members of the Youth Group oppose Unity. Without their votes, the coalition would not have a majority. The vote is scheduled for December. The Youth Group believes that the package is detrimental to the younger generation.
Merz rejected a delay
Chancellor Friedrich Merz (CDU) recently rejected the delay. “If we want active retirement on January 1, 2026, and I want it on January 1, 2026, then we still have to get this legislative package through the Bundestag,” he said at the Economic Summit. South German Newspaper. After the Bundestag it also has to go through the Bundesrat which was held on December 19. He wants this discussion to be completed by the end of this year. He insisted on the draft law proposed by the government, but at the same time hinted at the possibility of discussions regarding the text accompanying the law.
The pension package provides for a pension retention limit of 48 percent until 2031. This is a key demand of the SPD and was also agreed to in the coalition agreement. The Junge Union (JU) opposes maintaining the termination line after 2031. The pension package also includes the active pension promised by the Union, early retirement and mother’s pension requested by the CSU. At the same time, the Chancellor is planning the creation of a pensions commission that will deal with fundamental pension reforms from 2032 – and which should also include JU’s critics.
Grimm wants a higher retirement age and private benefits
In contrast, economist Veronika Grimm supports Junge Union. “We should not implement this pension reform, or continue this policy until 2031, but instead carry out reforms that reduce spending, leading to increased budget sustainability,” he told broadcaster RBB. Which is now Pension system will require increased contributions or higher subsidies from tax revenues from the budget. “This leads to increased non-wage labor costs and reduced competitiveness, thereby hindering economic development.” Alternatively, federal subsidies for pension insurance would increase significantly and worsen the budget situation.
Grimm demanded that more private provision be made. However, this is difficult for those on low incomes who also expect the lowest pensions. At the same time, Grimm wants to keep the current pay-as-you-go system affordable, for example by raising the retirement age for future generations. Existing pension funds should increase with inflation, and not, as before, with the development of wages, and should therefore be lower.
