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Bundestag Holds Expert Hearing on Pension Overhaul as Youth Conservatives Threaten Block

The cabinet plan to secure a 48 percent pension level faces fierce cost warnings.

Overview

  • The Committee on Labour and Social Affairs is taking evidence from experts and stakeholders, moving the reform toward potential Bundestag votes in the coming weeks.
  • The government’s package, approved by the cabinet last week, centers on stabilising the pension level at around 48 percent and includes a planned €12 billion equity reserve.
  • DPA reports estimate the fiscal impact at roughly €200 billion over 15 years, a projection employers label as the most expensive social law of the century.
  • The Junge Union and the CDU/CSU’s Junge Gruppe threaten to withhold votes unless changes are made, accepting 48 percent only through 2031 and warning of long-term costs if extended.
  • Positions split sharply in submissions: the DGB backs the reform but urges a permanent rise to at least 50 percent, while the BDA demands cost-cutting changes such as recalculating the standard pension based on 47 instead of 45 working years, and the government signals a forthcoming pension commission with coalition-level decisions likely on unresolved details.