CDU Rejects Pension Package Changes, Defends Consumption Taxes as Balanced Reform
Politics

CDU Rejects Pension Package Changes, Defends Consumption Taxes as Balanced Reform

Thorsten Frei, the Chairman of the CDU’s Union Group in the Bundestag, has rejected calls for changes to the proposed pension package, simultaneously defending the coalition’s planned consumption taxes. Speaking to “Welt am Sonntag”, Frei declared that the entire package should be adopted as is because he views it as a balanced proposal, where various elements offset one another.

While he concedes that there might be flexibility in defining the implementation of certain points, he warned that changes cannot be fundamental or basic. He argued that if sides begin to chip away at individual points, it will lead back to a cyclical stalemate: “If one side nibbles away at a point, the other side comes with a different point.” Such a scenario, he noted, resembles situations from previous decades where the need for pension reform was recognized, commissions were established, but ultimately, the suggested reforms were never actually implemented.

Frei defended the proposed tax on sugar-sweetened beverages, stressing that it possesses a “clear health aspect.” Regarding the tobacco tax increase, he acknowledged that it could contribute to inflation. However, he argued that this tax is a levy on a consumable item that is not strictly necessary for subsistence, making it fundamentally different from taxing labor.