Dennis Radtke, the Federal Chairman of the Christian Democratic Employees’ Association (CDA), used the growing criticism from the Social Democrats (SPD) regarding the proposed abolition of “Retirement at Age 63” as a platform for a sharp, general critique of his coalition partner. According to the German newspaper “Bild,” Radtke stated that the SPD was behaving like someone drowning, growing more frantic and struggling wildly in a panic. He questioned why the SPD failed to utilize the legislative process for the pension reforms to advocate for “reasonable transitions” and “solutions for particularly burdened professional groups,” instead opting to “question the whole picture again.” He argued that in a time when the economy and political center are under unprecedented pressure, “headless actionism is counterproductive.”
In response, Dirk Wiese, the Chief Parliamentary Officer of the SPD parliamentary group, informed “Bild” that once the specific draft legislation for the pension package is available, the SPD will collaborate with the CDU and CSU in parliament to focus on the detailed implementation. He emphasized that for the proposed retirement age of 64.5, the issue of special hardship rules and protective trust will play a decisive role.
Meanwhile, Marcel Fratzscher, President of the German Institute for Economic Research, told the paper that there was “no justification whatsoever” for people with 45 years of employment to receive an additional bonus. He labeled the lump-sum, tax-free pension as “an expensive redistribution from young to old and from poor to rich,” noting that it tended to benefit highly paid men.
Adding to the pressure, Steffen Kampeter, CEO of the Federation of German Employers’ Associations, cautioned both coalition partners, instructing them to address the promised reforms immediately: “Confidence is not gained by wavering.”
