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SPD Holds Line on Pension Plan as CDU/CSU Young Group Threatens to Block Bill

A proposed EU link between budget funds and pension reforms could intensify pressure on Germany's plans.

Overview

  • SPD General Secretary Tim Klüssendorf said the party will stick to Labor Minister Bärbel Bas’s package and pressed CDU/CSU leader Jens Spahn to secure his caucus’s support.
  • Bas’s draft would keep the statutory pension level at 48 percent beyond 2031, a move the Union’s Junge Gruppe says was not agreed within the coalition.
  • The 18-member Junge Gruppe is threatening to vote down the bill and argues it would add roughly €115 billion in costs by 2040.
  • Chancellor Friedrich Merz backed MPs’ right to raise concerns and noted the coalition deal fixed the 48 percent level only until 2031, which the Junge Gruppe says bolsters its stance.
  • The SPD floated expanding the pool of contributors—such as self-employed people, lawmakers and possibly new civil servants—while separate reporting says the European Commission is considering tying parts of the next EU budget to pension reforms from 2028, a step not yet adopted.