German Chancellor Friedrich Merz expressed his support for the government’s pension reform plan on Sunday, despite opposition from his party’s Junge Union youth wing. He made it clear at the Junge Union’s Germany Day in Rust that he would vote in favor of the pension package when it comes to the German Bundestag. “Yes, I will vote with a clear conscience,” he stated.
Merz characterized the reforms as just the beginning of a necessary debate about fundamental changes to the welfare state. He emphasized that they should restructure the pension system during this legislative period, in line with prior agreements within the coalition government.
In his speech, he also asserted that there is no collaboration between his party and the AfD, remarking, “Forget that word! We are far from this party. We have nothing in common with them.” This comes as 18 Junge coalition MPs expressed in October their refusal to support the pension package in its current form.
Controversial pension reform bill
The main concern among these MPs is that Labor Minister Berber Basu’s proposed bill would lead to an extra 120 billion euros in costs between 2032 and 2040, surpassing what was originally agreed upon in the coalition deal, which aimed to stabilize pension levels through 2031.
Although the Junge Union had hoped Merz would renegotiate the pension package as he had hinted previously, he firmly dismissed these expectations at the event.
Johannes Winkel, the association’s leader, reminded attendees that without the Junge alliance, Merz wouldn’t have achieved his roles as CDU president or federal chancellor. Merz called on party representatives to contribute to the discussion but urged them to refrain from suggesting ideas that aren’t viable. He criticized a political bidding war where participants compete to propose the lowest pension levels, stating, “That’s not how you win elections.”
Kevin Guniosdorz, the Junge Union state president from North Rhine-Westphalia, reminded Merz that they need to operate as a team, insisting that he should stand alongside the Junge Union, just as they have always supported him.
Another representative referenced Finance Minister Lars Klingbeil, who confirmed that no changes to the pension package would be made, prompting a call for Merz to remind the deputy prime minister of his authority.
Pascal Ledig, chair of the Bundestag Young Group, indicated strong support for rejecting the pension package, stating, “You can expect that. We will firmly oppose this issue,” receiving applause and a standing ovation from participants.
What started as a conflict between young CDU/CSU MPs and Social Affairs Minister Basu has escalated into a broader public dispute involving the Prime Minister. Young CDU/CSU parliamentarians are finding support from other socially-oriented factions within their group, evident during their last meeting in Berlin where about 30 MPs expressed solidarity.
If this division persists, securing a majority for the pension policy will likely become unattainable, potentially plunging the government into a serious crisis.
