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Employers’ Chief Urges Scrapping Germany’s Planned Mütterrente Expansion as SPD Sticks to November Vote

The government plans a November Bundestag vote on its pension package despite warnings that the roughly €5 billion tax bill would crowd out investment.

Overview

  • Employers’ president Rainer Dulger called for abandoning the planned expansion, arguing tax-funded spending on the benefit should be redirected to investment and that it sends the wrong signal to younger generations.
  • SPD parliamentary manager Dirk Wiese rejected the appeal and said the coalition will advance its overall pension package in November, including the Aktivrente and a guarantee to hold the pension level at 48 percent.
  • CSU leader Markus Söder continued to defend the policy as recognition of women’s lifetime care work, even as business groups and economists press for a halt given weak economic data.
  • The third stage would equalize credited child‑rearing periods for children born before 1992, with application from January 1, 2027 and possible retroactive payments once enacted.
  • Deutsche Rentenversicherung estimates annual costs of about €5 billion financed from general taxes, with reporting indicating roughly 10 million beneficiaries and around €20.40 more per child per month.