
1 month · 3 summary articles
Germanys coalition pushes pension reform as SPD and CDU back structural change
Germanys ruling coalition adopts full Rentenkommission pension reform package
Germany's pension commission proposes raising retirement age and ending Minijobs
Germany’s ruling coalition is poised to adopt the 33-point package of the state-appointed Rentenkommission in full, with Chancellor Friedrich Merz signalling he will push the draft through cabinet and into law before the next federal election. The proposals—centred on phasing out the “Rente mit 63” and introducing a mandatory funded pillar—have already triggered a rebellion within the SPD, where only former labour minister Manuela Schwesig has openly opposed the plan so far .
CDU politician Pascal Reddig, a former “pension rebel” who now sits on the commission, defended the package in an interview with the Frankfurter Allgemeine Zeitung, arguing that the current early-retirement option fails those whose bodies can no longer cope with work. “The Rente mit 63 does not reach the people who genuinely cannot go on,” he told the paper . His stance underscores the political realignment inside the CDU, where younger reformers are sidelining traditionalist voices.
Across the Rhine, Spanish public opinion remains deeply sceptical. A Funcas study published on Wednesday shows 68 % of Spaniards expect serious difficulties financing public pensions, yet only 12 % support raising the retirement age to 70. The data, released the same day as the German commission’s final report, highlights the cross-border tension between actuarial necessity and electoral feasibility .
Domestically, the plan’s centrepiece—a mandatory capital-funded top-up—has drawn fire from the Greens, who accuse the government of orchestrating “one of the largest social cuts in years” through a simultaneous 1.5-billion-euro reduction in housing benefit. The Bauministerium confirmed the cut in a draft law circulated on Thursday, adding to the sense of austerity package that critics say will hit low-income households twice .
Rating agency Scope warned that while the reforms ease immediate budget pressure, they shift risk onto consumers through higher capital-market exposure. “The plans help the federal budget but burden households,” Scope noted in a study released the same morning .
Inside the SPD, left-wing MP Annika Klose—once a vocal critic—has become an unlikely champion of the package, telling the Tagesspiegel that her party must accept “what was previously considered a provocation” if it wants a sustainable system . With Merz’s office already drafting the legislative text, the coalition’s next move will be to reconcile the funded-pillar design with the constitutional requirement that pension levels remain “secure and adequate.”
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