In a dispute over the black-and-red government’s pension package, Spahn and Bas signaled an offer to the young rebels. But they chose not to vote on the legislation until April.
In the coalition pension fund dispute, an offer emerged to young CDU/CSU lawmakers who threatened to say no to existing reform plans in the Bundestag. “Part of the solution is that we explain in more detail what the commission’s objectives are for the further pension reform steps that I will take in December,” Federal Labor Minister and SPD leader Bärbel Bas told the “Rheinische Post”.
How Spahn and Merz got on
Union group leader in parliament Jens Spahn (CDU) made it clear in a general debate in the Bundestag that the controversial and now planned pension package should be followed by a “second pension package”. According to the Pensions Commission, this fundamental reform should start concretely by mid-2026 and thus achieve stability in old-age security in the next decade.
However, this did not seem to convince the young rebels. The United Youth Group faction called for the controversial law to be postponed. “We cannot agree on the package as it stands now,” group chairman Pascal Reddig told “Spiegel”. He could only advise against “voting when we don’t know what the outcome will be.”
Choose only in April?
Reddig said: “We wouldn’t feel hurt if we just said that we can only decide on the pension package in April. And before that, the pension commission meets, makes recommendations, and then we decide on pension packages I and II together.”
Chancellor Friedrich Merz (CDU) assured that the government takes responsibility for creating “new levels of service” in line with the coalition agreement, “perhaps even with new indicators.” The creation of the commission “is not a strategy to avoid politics.” The new welfare state model must provide a fair balance and be acceptable across generations by the majority of society.
The coalition agreement states: “In the pensions commission we will review new indicators for the overall level of provision across all three pension pillars by the middle of the legislative period.” These are statutory, private and company pensions. Currently, the defining parameter is the pension level, which is currently the subject of dispute and only reflects the statutory pension.
Expand the pension commission’s mandate?
Bas renewed Merz’s proposal to submit a resolution motion. Applications like this are often used when conflicts occur. “We can expand the mandate of the commission, which is somewhat unclear in the coalition agreement.” Everything should be on the table there.
However, the Youth Group in the Union parliamentary group has repeatedly emphasized that a non-binding motion to reach a resolution is not enough for them. However, Bas reiterated: “The SPD cannot and will not deviate from the draft law jointly passed by the federal government.”
Bas stated that he was willing to compromise regarding the composition of the commission. “It may be that we don’t have a genuine expert commission.” This is motivated by the still unclear nature of how the Union’s youth forces should be included in the development of reforms.
Coalition on the verge of collapse?
This dispute also concerns the cohesion of the coalition as a whole. In the federal cabinet, the Union and the SPD introduced the controversial pension law without any objection. Merz and the leaders of the Union and SPD factions want the bill to be passed in time for Christmas so that it can be implemented on January 1. In the Chancellor’s Merz coalition committee, black-red leaders are also expected to discuss the pension issue on Thursday evening – but the Young Group did not have a seat at the table.
The bill aims to stabilize pension provisions in relation to wages by 48 percent by 2031. In addition, mothers’ pensions will be expanded. The Youth group agrees with 48 percent by 2031. But according to the bill, the rate would also have to be one percentage point higher in 2032 than it would have been without the law. The cost reaches 15 billion per year. Changes are therefore required to gain approval – junior Union staff have not changed the positions they have held for weeks.
