The coalition had actually already agreed on the core of the pension package. Internal conflicts are delaying approval in the cabinet. That has to do with the budget – and an FDP party conference.
The traffic light coalition is postponing the decision on its planned pension package. As the German Press Agency learned from government circles, the draft will not be approved by the cabinet on Wednesday. But it was agreed that this should happen in May, it was said.
The coalition leaders Chancellor Olaf Scholz (SPD), Vice Chancellor Robert Habeck (Greens) and Finance Minister Christian Lindner (FDP) had previously met in the Chancellery. According to a report in the “Bild” newspaper, the Finance Ministry blocked the pension package from being passed this week.
After the meeting, the Ministry of Finance said: “Due to the high number of registrations for the 2025 budget, current projects must be reclassified into the overall context.” Discussions within the government are currently being held on this matter. Lindner’s ministry confirmed that the cabinet’s decision on the pension package was now “planned for May”.
Pension level of 48 percent guaranteed until 2039
The pension package, which was actually already negotiated by Labor Minister Hubertus Heil (SPD) and Lindner, is intended to guarantee a pension level of 48 percent by 2039. This costs additional money, so the contribution rate will increase. This increase is to be slowed down by investing billions in the capital market. From the mid-2030s onwards, annual subsidies will be paid to the pension insurance from the income.
The FDP clearly criticized the plans at its party conference at the end of April and called for further reforms. The package “does not currently meet the requirements for intergenerational equity and long-term financial viability,” the resolution states. The contributions would also have to be stabilized.
