The German Confederation of Employers’ Associations (BDA) is escalating its critique of the ruling coalition’s proposed pension package, urging the government to halt its current trajectory and initiate a fundamental renegotiation. In a stark rebuke, BDA President Reiner Dulger characterized the legislation as “the most expensive social law of this century” and a “billion-euro misstep” in an interview with Bild.
Dulger’s challenge comes amidst growing internal dissent within the ruling parties. A recent resolution by the Young Group within the CDU/CSU parliamentary group signaled a potential collapse of the package’s parliamentary support, highlighting fracture lines within the conservative bloc. Without adjustments, the proposed reforms risk failing to secure the necessary majority in the Bundestag.
The BDA’s intervention isn’t merely a request for minor tweaks, but a call for a systemic rethink. Dulger specifically accused the government of failing to demonstrate intergenerational fairness, pointing out that the package contradicts elements of the coalition agreement itself. He argues that the current approach exacerbates the burden on younger generations while failing to address the long-term financial sustainability of the pension system.
The BDA’s demand for “a fair distribution of burdens between young and old” reflects a growing debate about the balance of responsibilities within German society. Critics argue the current system perpetually shifts the cost of supporting retirees onto the working population, hindering economic competitiveness and creating a looming social time bomb.
The government now faces the difficult prospect of either attempting to appease the BDA and the dissenting voices within its own ranks, potentially requiring significant concessions to the proposed legislation, or risking a highly contentious parliamentary battle with uncertain outcome. The unfolding situation underscores the precarious state of the coalition’s unity and the complex political calculations surrounding the future of German pensions.
