"German Chancellor Friedrich Merz dug in on proposed pension reforms Friday despite resistance from younger members of his conservative CDU party who fear they will saddle future generations with unaffordable costs. Speaking Friday morning after late-night talks with his junior coalition partners the centre-left Social Democrats (SPD), Merz said it was the SPD's "wish that we not amend this bill". "We agreed on this yesterday," he added."
"The government's current pension proposals aim to keep pensions at 48 percent of average income until 2031, thereby meeting a key SPD demand. The Union rebels have voiced particular concern at the idea that this target could extend beyond 2031. They say this would penalise younger Germans who would have to foot the bill for pensions as the population ages."
Chancellor Friedrich Merz defended proposed pension reforms after late-night talks with coalition partner SPD and insisted on keeping the bill unchanged for now. The reforms aim to guarantee pensions at 48 percent of average income until 2031, fulfilling an SPD demand. Eighteen CDU Junge Union members threatened to block the plan over concerns that extending the target beyond 2031 would burden younger generations with rising costs. Some economists supported the rebels, arguing the measure would indiscriminately benefit wealthy retirees. The government also proposed an "active retirement" allowing pensioners to earn up to €2,000 tax-free per month. A broader pensions review is scheduled for 2026.
Read at The Local Germany
Unable to calculate read time
Collection
[
|
...
]