A faction within the conservative Union parliamentary group is mounting a significant challenge to the German government’s proposed pension reform package, raising concerns about intergenerational fairness and long-term fiscal responsibility. The “Young Group” comprised of 18 members, has formally declared the draft legislation “not approvable in its current form” according to a resolution reported by “Der Spiegel”.
The core of their opposition lies in the package’s projected costs beyond 2031. While the coalition agreement between the Union and the Social Democrats (SPD) commits to stabilizing the pension level at 48% until 2031, the Young Group argues that the current draft, championed by SPD Labor Minister Bärbel Bas, inadequately addresses the financial implications beyond that deadline. The legislation, as it stands, allegedly aims for a permanently higher pension level – approximately 1% above what would be legally mandated – bypassing agreed-upon fiscal boundaries.
This deviation, according to the Young Group’s resolution, carries a heavy price tag. Projections indicate over €115 billion in additional costs between 2032 and 2040 alone, with those expenditures continuing well into the 2040s. The group fears that approving the current bill would represent “the most expensive social law of this century” effectively burdening the younger generation with a permanent, multi-billion euro liability.
Pascal Reddig, Chairman of the Young Group and a CDU parliamentarian, spoke critically, stating that such a financial imposition on younger generations is “unacceptable”. The challenge poses a direct threat to the government’s ability to pass the pension reform, as the Young Group’s unified opposition could effectively block the legislation.
The dispute highlights broader tensions within the governing coalition regarding long-term fiscal planning and the equitable distribution of social welfare obligations. Critics argue that Minister Bas’s approach, while seemingly intended to bolster the retirement safety net, risks compromising the financial stability of future generations and fostering resentment towards the current beneficiaries of the pension system. The outcome of this internal conflict within the Union will likely have significant ramifications for the future of German social policy and intergenerational relations.
