German Bundestag discusses controversial pension reform
Published: Friday, Sep 27th 2024, 11:10
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On Friday, the German Bundestag began deliberations on a pension reform that is also controversial within the government. Among other things, higher contributions are intended to keep the pension level in Germany stable despite demographic change.
Federal Minister of Labor Hubertus Heil (SPD) defended the package against criticism, including from within the coalition. During the first debate in the Bundestag, he said that it was the responsibility of the federal government to provide people with security. "And this applies above all to security in old age," he said.
The coalition of SPD, Greens and FDP wants to secure the pension level permanently with the pension package II. In future, pensions are to continue to follow wage trends. In future, pension insurance contributions are to be stabilized with income from a "generation capital" with billions invested in the stock market. The FDP parliamentary group is calling for improvements.
Heil spoke out against a higher retirement age. "Those who want to and can should work longer," he said. The government would also provide financial incentives for this. However, increasing the statutory retirement age beyond 67 would be unrealistic.
Criticism from the opposition: "traffic light" must give him a pension
CDU/CSU parliamentary group deputy Hermann Gröhe called the pension package a missed opportunity for greater intergenerational fairness. A new start was needed in pension policy. "The best way to achieve this is for the traffic light to go into retirement."
The Parliamentary Secretary of the FDP parliamentary group, Johannes Vogel, said that the question arose as to the balance in the draft bill. Heil is presenting a proposal that would enshrine enormous increases in pension contributions in law. Ever-increasing contributions would mean less and less net income.
CDU/CSU parliamentary group deputy Mathias Middelberg said that Vogel had made a pure opposition speech. The FDP must break up the coalition, he said.
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