Overview
- The government’s newly approved package fixes the pension level to 2031 and expands the mothers’ pension, which she calls a fatal signal that raises contributions and squeezes fiscal space.
- Grimm says the federal subsidy to statutory pensions already accounts for about 33% of the budget and will increase further under current policy.
- She warns that sizable tax hikes appear likely and that companies are weighing relocations abroad, threatening jobs and competitiveness.
- Reform debate is intensifying, with economist Jens Südekum proposing retirement tied to contribution years and Labour Minister Bärbel Bas signaling openness.
- Bavarian Premier Markus Söder rejects bringing more income types or groups into the contribution base, as a pension commission prepares reform proposals for next year.