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Merz Moves to Contain Pension Rebellion as Welfare Overhaul Triggers Backlash

He proposes a speedy commission to map post‑2031 changes in a bid to calm dissent.

Overview

  • On ARD, Friedrich Merz backed the current pension bill through 2031 and pledged to set up a Rentenkommission this year to report before summer 2026, paired with a clarifying ‘Begleittext’.
  • The Junge Union’s 18 Bundestag members threaten to withhold support over projected long‑term costs of roughly €120 billion after 2031, endangering the coalition’s slim majority for the early‑December vote.
  • Bavarian premier Markus Söder urged further talks with the SPD but offered no specifics, while SPD leader Lars Klingbeil rejected changes to the bill; commentary says the dispute has weakened Merz’s standing.
  • A BMAS draft to tighten basic income rules caps covered rent at 1.5 times local limits and expands sanctions, including losing the standard benefit after a first job refusal, three missed appointments, or 30 days without registering.
  • Welfare groups and recipients warn the plan risks more homelessness and say jobcenters lack staff and integration funds, with critics arguing the punitive approach isn’t matched by investment needed to help people into work.