Ahead of the major union protest day, Yasmin Fahimi, head of the DGB (German Trade Union Confederation), has sharply criticized the planned capital pension and warned of potential reductions in retirement benefits. Speaking to Focus, Fahimi stated that the capital pension, as proposed by the commission, “is a deception.” She argued that the federal government’s plan is not intended as an expansion of benefits but merely as a way to cushion the decline of the statutory pension level.
The DGB chief further warned that many generations nearing retirement will effectively receive nothing because the accumulation of the capital stock takes decades. She added that, nominally, many individuals may even receive less income.
In addition to her concerns about the financial viability of the pension plan, Fahimi expressed deep frustration over the lack of involvement of social partners in the government’s reform process. “The coalition agreement speaks extensively about including social partners. The reality is that social partners have been involved in substantial reforms less than ever,” Fahimi said. She concluded by slamming the ruling coalition, stating, “Only when there is a societal outcry does the Merz government remember us and expect us to resolve their conflicts. That is absurd.” Fahimi noted that, thus far, there has been no further invitation for a social partner dialogue within the Chancellery.
This dissatisfaction has led the DGB to call for nationwide protests on September 26th, campaigning against “social cuts.”
