Growing unease is emerging within the Christian Democratic Union (CDU) regarding the pension package approved by the Federal Cabinet in August. Johannes Winkel, chairman of the Junge Union (JU), the CDU’s youth wing, has voiced strong reservations about the draft legislation, describing it as “not intergenerationally sustainable” in an interview with the “Frankfurter Allgemeine Zeitung”. He has called for fundamental revisions during the parliamentary process.
Winkel expressed concern that the draft extends beyond the stipulations outlined in the coalition agreement, potentially complicating the upcoming debate. He also cautioned regarding the proposed increase to the “mothers’ pension” a key demand from the CSU, the Bavarian sister party to the CDU.
The central point of contention revolves around a provision that aims to temporarily suspend the sustainability factor within the pension formula until 2031. This suspension is intended to allow for potentially larger pension increases. Prior to Winkel’s critique, Nicole Hoffmeister-Kraut, Baden-Württemberg’s Minister of Economic Affairs and Pascal Reddig, chairman of the JU in the Bundestag, had also raised objections to the sustainability factor’s temporary removal.
While Winkel acknowledged the coalition agreement’s provision for such an intervention in the pension formula, he emphasized a crucial secondary requirement: the sustainability factor must be fully reinstated from 2032 onward, at the level it would have been at had existing legal structures remained unchanged.
The government’s draft legislation proposes that subsequent pension increases after 2031 will be calculated based on the then-current, elevated level. Winkel stressed, however, that this temporary adjustment must not lead to a permanent increase in pension expenditure. His demand essentially calls for the additional pension increases generated between now and 2031 to be offset against future increases.
Regarding the CSU-championed “mothers’ pension”, Winkel expressed regret that the Union had effectively relinquished a bargaining position with the Social Democratic Party (SPD) by conceding to the proposal. He suggested the move hindered the Union’s ability to argue persuasively for limitations on social spending during coalition negotiations. With existing gaps in the federal budget for the coming years, all spending requests are now under intense scrutiny, he warned. He urged all three coalition partners to reassess the financial viability of remaining commitments outlined within the coalition agreement.