Leading employer associations are voicing strong criticism of the German government’s proposed pension reforms. Rainer Dulger, President of the Association of German Chambers of Industry and Commerce (BDA), told the Handelsblatt newspaper that the planned pension package risks becoming detrimental to future generations. He estimates the cost to reach approximately €50 billion by 2031, labeling it “the most expensive social law of this century” and urging against its enactment.
The BDA’s assessment of the draft legislation, presented by Labour Minister Bärbel Bas (SPD), details substantial additional costs associated with maintaining the current pension level until 2031 and expanding the maternity pension, estimating a total of €200 billion over the next 15 years.
According to the BDA, the implementation of the pension package would result in federal subsidies escalating more rapidly than currently projected, potentially reaching €131 billion by 2030 – nearly 40 percent higher than present levels. The association argues that these additional funds would necessitate cuts in other areas, hindering investment opportunities and tax relief measures.
Should the government maintain its current trajectory, the BDA is advocating for a swift return to the legally defined pension level after 2031. Such a move, they believe, could significantly reduce the overall cost of the package. Currently, the legislation is designed to sustain a higher pension level beyond 2031, even after the initial reforms are implemented.
