Younger members of the CDU/CSU faction in the Bundestag had rebelled against a government proposal that would guarantee the level of pensions in the coming years. However, Merz’s social democratic coalition partner SPD refused to adjust the plan that had been agreed upon in the cabinet. The younger CDU faction members together have enough parliamentary seats to torpedo the cabinet proposal
Elements added to proposal
Last night it was agreed with the younger CDU members that elements would be added to the proposal to ensure that the costs of the pension guarantee, estimated at 120 billion euros, are not only borne by younger generations.
The original plan agreed to keep the pension at at least 48 percent of the average wage until 2031. This could then possibly be adjusted according to a certain distribution key to the ratio between the number of workers and the number of retirees. However, according to the rebel CDU members, this is far too expensive and younger generations are paying the bill.
Commission will investigate lower limit
According to the website of the weekly magazine Der Spiegel, it has been agreed that a committee will be established that will investigate the lower limit and come up with proposals to reform old-age provisions by the end of next year. Whether that is indeed enough to win over the CDU rebels remains to be seen later today.
In addition to a lower limit for pensions, the pension package also stipulates that elderly people who want to continue working after retirement can continue to work tax-free for 2,000 euros per month, as well as extra pension for certain groups who had children before 1992.