Overview
- The Greens ruled out backing the coalition’s pension package and unveiled a counter‑proposal focused on curbing early retirement, broadening the contributor base to include new civil servants, MPs and uncovered self‑employed, and using capital‑market instruments with a simplified guarantee pension.
- The government bill, slated to take effect on 1 January 2026, would hold the pension level near 48% and add measures such as an expanded mothers’ pension, an Aktivrente allowing tax‑free earnings, a Frühstartrente with child savings, stronger occupational pensions and Riester reform.
- Eighteen members of the Union’s Young Group threaten to withhold votes over long‑term costs, leaving the coalition without a secure Bundestag majority as the SPD resists changes and Jens Spahn urges party discipline.
- Chancellor Friedrich Merz said he expects an internal agreement and highlighted that an accelerated Rentenkommission will convene in December to produce proposals within six months.
- A group of 21 prominent economists urged withdrawing the package entirely, arguing it is fiscally unsustainable and shifts burdens to younger generations, with signatories including Clemens Fuest, Veronika Grimm, Monika Schnitzer and Martin Werding.