Merz and Bas push pension reforms despite SPD resistance

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21 days · 9 summary articles
Kanzler Friedrich Merz and Labour Minister Bärbel Bas on Tuesday pushed ahead with their plan to fully implement the recommendations of the newly published Rentenkommission, despite immediate resistance from within the SPD. Speaking at the annual “Tag der Industrie” in Berlin, Merz hailed the commission’s proposals as “far-reaching” and called for swift legislative action to stabilise Germany’s pension system. “I would not have expected the commission to come up with such a comprehensive set of recommendations,” Merz told industry leaders .
The commission’s 33-point plan, published on 23 June 2026, includes linking the statutory retirement age to life expectancy, phasing out the “Rente mit 63” after 45 contribution years, and introducing partial capital-funded elements inspired by the Swedish model. ESMT President Jörg Rocholl, a commission member, described the package as “very balanced and subject to continuous review” .
Bas, who has pledged to “stand personally behind” the proposals, faces growing dissent within her own party. Mecklenburg-Vorpommern’s SPD premier Manuela Schwesig warned that Berlin must not “ride roughshod over the Länder,” while other SPD figures questioned whether the reforms could be implemented before next year’s state elections . The left-wing *taz* described the package as “a work of art with blank spots,” highlighting unresolved questions over intergenerational fairness and regional labour-market disparities .
Industry reaction was mixed. The Federation of German Industries (BDI) welcomed the long-term signals but cautioned that higher retirement ages could exacerbate skilled-labour shortages. Bundesbank President Joachim Nagel struck a cautiously optimistic note, calling the reform and a tentative Iran ceasefire “two bright spots” for the economy, while warning against excessive euphoria .
AfD leader Alice Weidel criticised the commission’s proposals as “onerous demands,” while Berlin’s governing mayor Kai Wegner praised the compromise and urged parallel tax relief to support middle-income households . Merz, seeking to rally business backing, framed the reforms as a generational compact: “We have wasted many years; now we must deliver prosperity for the young.”
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