Overview
- Germany’s cabinet‑approved bill holds the statutory pension level at 48% through 2031, with wording that keeps the post‑2031 baseline about one point higher than current law, which is the clause contested by younger CDU/CSU lawmakers.
- The 18‑member Young Group threatens to vote against the package, endangering the coalition’s slim 12‑vote margin, while SPD leaders insist the text will not be reopened.
- Merz said he is skeptical of postponing the early‑December vote and stressed passage is needed to launch the Aktivrente in early 2026, with Bundesrat sign‑off targeted for December 19.
- He offered a political compromise via a companion declaration and a pension commission to be appointed this year and to report before summer 2026, as cost estimates of roughly €100–120 billion over later years fuel the backlash.
- Separately on care policy, 2026 Pflegegeld rates remain at 2025 levels and discussions about abolishing Pflegegrad 1 are under review as a savings option estimated at about €1.8 billion annually, with no decision taken.