The head of Germany’s leading trade union confederation, DGB, Yasmin Fahimi, has strongly criticized proposals from the German Institute for Economic Research (DIW) regarding pension reform. In comments to the “Tagesspiegel” newspaper, Fahimi described the suggestions as “degrading” an infringement on individual liberties and a “new low” for the DIW. She asserted the proposals demonstrated a lack of understanding of the realities faced by individuals.
Fahimi’s criticism centers on recent DIW suggestions, including a potential ‘boomer solidarity tax’ and a mandatory year of continued work for retirees, both aimed at enhancing intergenerational equity within the pension system. She argued these proposals are as flawed as employer-led suggestions, such as the introduction of periods of unpaid leave for caregivers.
Fahimi highlighted the mortality rate among those requiring care, noting that over 20% of individuals needing care pass away within the first twelve months. She contends that proposing a period of unpaid leave implies an acceptance of potentially thousands of vulnerable individuals being denied benefits despite years of contributions. “That is insidious” she stated.
The criticism comes amidst advocacy from the Federation of German Employers’ Associations (BDA) for a radical overhaul of Germany’s care system. The BDA has proposed a year of mandatory continued work or a period of unpaid leave for those requiring care, arguing that these measures would alleviate financial pressures on businesses and employees contributing to the system.
