After a long struggle, the cabinet cleared the way for pension reform in May. Chancellor Scholz wants a swift decision. The FDP faction, however, rejects the package – contrary to an agreement made by Finance Minister Lindner.
The FDP parliamentary group continues to insist on changes to the planned pension package II. “The pension package is not yet ready for approval in parliament,” said parliamentary manager Johannes Vogel to the “Bild” newspaper.
Vogel: Sweden as a role model
The plans of the package in its current form would cause contributions for the working middle class to rise further, said Vogel. Real changes are therefore needed in the parliamentary deliberations that started this week. “But the working middle class needs more money in their pockets, not less,” he said.
Vogel cited Sweden as a positive example. He explained: “Countries like Sweden are showing how things can be done better with more shares: there, the pension level is increasing for everyone, not the contributions. We need to be more courageous in this direction here too.”
Pension reform actually negotiated
Finance Minister Christian Lindner (FDP) and Labor Minister Hubertus Heil (SPD) have actually agreed on a reform of the statutory pension system for a long time. After months of wrangling, the Federal Cabinet launched the Pension Package II in May. The Bundestag will discuss the Pension Package II in a first reading on Friday.
This means that pensions will continue to rise in line with wages in Germany. The pension level will be fixed at 48 percent. In addition, generational capital from federal funds will be invested in the stock market. The interest income from this will be used to slow down the future increase in contributions.
Lindner considers the project to be capable of approval
FDP leader Lindner recently made it clear that he believes the pension package has been negotiated and is capable of being approved. Chancellor Olaf Scholz (SPD) said: “It has to happen. Everyone knows that.” There is a firm agreement “that the second pension package will be discussed quickly in parliament and passed before the 2025 budget in November.”
And SPD leader Lars Klingbeil also made it clear again this week that the SPD insists on a decision. There is a clear agreement in the traffic light coalition, which was renewed again as part of the budget negotiations, he said.