The contentious debate surrounding Germany’s proposed pension reforms has taken a sharp turn, with prominent economist Axel Börsch-Supan publicly endorsing the stance of a group of young Christian Union (CDU/CSU) lawmakers threatening to block the legislation. Börsch-Supan, a renowned expert in pension systems, argues the government’s plan to maintain the current pension level until 2031 carries an unsustainable financial burden, disproportionately impacting younger generations.
The core of the dispute lies in the projected cost of stabilizing the pension level. The government’s proposal necessitates a significant increase in contributions and tax subsidies, surpassing already anticipated rises. This, according to Börsch-Supan, constitutes a “massive additional strain” on younger workers who will ultimately shoulder the costs.
The dissenting group of young Union politicians has voiced concerns over the long-term economic viability of the plan, suggesting it compromises future investment and economic growth. Börsch-Supan’s support amplifies their arguments, adding considerable weight to the pushback against the government’s strategy.
Furthermore, the economist advocates for a targeted approach, suggesting the pension level should be stabilized solely for low-income earners, a cohort he deems most reliant on state support in retirement. He believes those already financially secure in retirement should contribute more substantially to mitigating the fiscal challenges arising from demographic shifts.
The criticism extends to Christian Union leader Friedrich Merz, once lauded as a leader aiming to represent all generations. Börsch-Supan accuses Merz of failing to uphold this promise, alleging the current pension policy exhibits a generational imbalance. The economist’s commentary introduces a critical perspective on leadership and policy consistency within the governing coalition, potentially fracturing the party’s unified front and further complicating the path to pension reform. The escalating tensions highlight a growing rift within the Christian Union and an emerging challenge to the government’s economic agenda.
