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Pension Package in Peril as Coalition Sets Thursday Talks to Break Deadlock

The coalition’s majority is at risk after 18 young Union MPs threatened to vote no.

Overview

  • Coalition leaders plan to use Thursday’s Koalitionsausschuss to seek a compromise, with only limited sitting weeks left to pass the bill this year.
  • The SPD is holding to the cabinet draft that guarantees a pension level of at least 48% through 2031 and bundles Mütterrente, Frühstartrente and Aktivrente slated to begin on January 1, 2026.
  • The Young Group warns that effects after 2031 would add about €120 billion over ten years; CDU manager Steffen Bilger proposes a parallel Bundestag resolution, which the rebels say lacks binding force.
  • Twenty-two economists have called for the bill to be withdrawn and employer chief Rainer Dulger backs a halt, while IMK director Sebastian Dullien counters that stabilization would also benefit younger cohorts.
  • An IW study finds 40.6% of state spending goes to social protection, fueling fiscal concerns, as a Forsa poll shows 70% support for raising roughly €110 billion from 2031 to stabilize the pension level.