(de-news.net) – Prominent officials continue to predict an eventual resolution regarding Germany’s contested pension package. CDU/CSU parliamentary leader Jens Spahn has expressed confidence that the alliance will ultimately reach agreement, even as negotiations remain ongoing with the 18 members of the Union’s Young Group and representatives of the economic wing who reject the current plan as financially unsustainable. These younger parliamentarians have already submitted proposals to the SPD leadership, seeking revisions during the legislative process.
Within Union circles, discussions are underway about granting the head of the Junge Union, Johannes Winkel, a formal role in the pension commission, thereby signaling reform ambitions and giving the younger faction a visible position in shaping long‑term policy. The coalition intends to bring the package to a Bundestag vote in early December, but without the support of the Young Group in the German parliament, a majority appears uncertain. The group has criticized the planned stabilization of the pension level beyond 2031 as unaffordable and inequitable for younger generations.
SPD chair Lars Klingbeil has rejected modifications, while Chancellor Merz continues to campaign for approval. Senior CDU figures Andreas Jung and Manuel Hagel have suggested concessions, including allowing young parliamentarians to participate directly in designing a broader reform through a politically appointed commission rather than leaving the task solely to external experts. They argue that such involvement would help balance generational interests and establish a sustainable framework for pension financing. The debate has provoked strong reactions from the SPD youth group. Juso leader Philipp Türmer condemned Union resistance, contending that the real divide lies between rich and poor rather than between generations. He advocated strengthening the statutory pension by broadening the base of contributors and increasing redistribution within the system.
SPD chairwoman Bärbel Bas urged the Union not to obstruct the reform, emphasizing that the package had already been agreed in coalition negotiations. Winkel, however, expressed optimism that parliamentary deliberations would yield revisions, pointing to signals of understanding from SPD members and warnings from experts about long‑term fiscal sustainability. SPD deputy leader Wiebke Esdar defended the proposal as essential for stability beyond 2031, while leaving open the question of whether civil servants should be included. Green co‑chair Franziska Brantner, on her part, acknowledged concerns about generational fairness but cautioned that rejecting the proposal could result in millions of citizens falling into basic security in old age.
Parallel to these debates, the Bundestag has begun formal deliberations on the government’s proposal for an ‘active pension,’ designed to encourage older citizens to remain in employment through tax incentives. The plan envisions a monthly tax exemption of 2,000 euros for individuals who have reached statutory retirement age while continuing in social insurance–covered work, with implementation scheduled for the turn of the year. Coalition supporters argue that the measure would strengthen labor markets and the economy, while opposition members warn of constitutional risks in age‑based taxation and call instead for clearer communication about existing opportunities to earn additional income alongside pensions.
At the same time, the broader pension package remains highly controversial. Economic experts Veronika Grimm and Martin Werding have urged the coalition to reconsider its overall strategy, criticizing provisions such as the extension of the ‘mother’s pension’ and the stabilization line for pension levels as fiscally unsound and demographically misguided. They recommend linking retirement age to life expectancy, adjusting benefits to price developments rather than wages, and reinstating the sustainability factor. Both economists insist that deeper structural reforms are indispensable to ensure the long‑term viability of the system, warning that without such measures the financial burden on future generations will become increasingly untenable.