The Social Democrats were very happy that something had finally been achieved for people with small pensions. The basic pension, said Labor Minister Hubertus Heil and SPD leader Saskia Esken in unison, was a “socio-political milestone.” That was 2020, both were still in the grand coalition under Chancellor Angela Merkel. “1.4 million people will be entitled to a basic pension in the future,” Esken announced at the time. In fact, the basic pension became a reality on January 1, 2021, after tough negotiations with the CDU and CSU. However, the results after three years are much more sobering than the term “socio-political milestone” suggests.
Balance sheet from DIW: Basic pension has less effect than expected – a lot of bureaucracy – economy
