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Bundestag Passes Pension Reform, Stabilizing Merz’s Fragile Coalition

A reform commission will draft broader pension proposals by mid‑2026 to address long‑term costs.

Overview

  • The package passed 319–225 with 53 abstentions after weeks of intra‑coalition tension.
  • The law guarantees state pensions at 48% of average wages until 2031 and adds incentives, including tax breaks, for retirees to keep working.
  • Eighteen young CDU lawmakers had threatened to oppose the measure, warning of €10–15 billion in extra annual costs after 2031.
  • The SPD insisted the bill be approved without changes, and Merz pushed for an absolute‑majority vote to underscore control of his bloc.
  • Die Linke indicated it would abstain, and coalition leaders offered the reform commission as a concession to dissenters.