Federal Chancellor Friedrich Merz (CDU) defended the pension proposals from the expert commission during a government survey in the Bundestag, describing them as “a big step towards a new pension system” and essential for long-term stabilization. He reiterated his commitment to fully implement these proposals, stressing the urgency of launching the reform package.
According to Merz, this will enable Germany to do “what we should have done long ago” and what other European countries have already accomplished. He remarked that with this reform package, “something very fundamental will be decided anew” regarding welfare, the labor market, and pension provision in Germany, calling it “a big step in the right direction”.
Key Proposals and Criticism
The commission presented its pension reform proposals on Tuesday morning. Among other changes, they suggest that the statutory retirement age will likely increase by approximately half a year per decade, in line with rising life expectancy. The proposals also include plans to eliminate the option for early retirement without deductions after 45 years of contributions. The proposals have sparked mixed reactions from politicians and businesses.
The leader of the Green faction in the Bundestag, Katharina Dröge, questioned Merz about potential reductions in pension points for relatives who provide care, highlighting the challenges faced by single parents and families with disabled children. Merz responded that “the highest goal is always to help families, especially those dealing with people with disabilities”. He emphasized: “We truly attach the greatest importance to ensuring that those who need the help of our country and the solidarity community receive this help in the future as well. There should be no restrictions that would be unacceptable for these affected individuals and families”.
In response to Dröge’s inquiry about covering the pension financing deficit by increasing the inheritance tax, Merz reacted coolly. The Chancellor stated that redistribution, such as through a higher inheritance tax, rarely addresses major social problems.
Later Retirement and Denial of Cuts
Merz reaffirmed his commitment to a later retirement age. The co-chair of The Left, Janine Wissler, criticized the plan to raise the retirement age, noting that many workers in physically demanding jobs or shift work already retire much earlier than 65 or 67 years. She asked Merz if he considered it fair that such individuals face significant pension deductions.
Merz replied that the retirement age must be adjusted according to life expectancy, which is necessary to sustain the system. “Of course, those who cannot work longer due to health reasons as they age will be taken into account. This will be ensured by appropriate mechanisms,” he added. He noted that this is already happening today, for instance, through disability pensions, and “this will not change”.
Chancellor Merz dismissed accusations that raising the retirement age constitutes actual pension cuts. “There are no cuts to statutory pensions,” he stated. “All claims made in this regard in recent days are false.”
Source: Der Spiegel