CRBC News
Politics
Conflict
Security
Economy
Science
Technology
Environment
Health
Culture
Society
Lifestyle
Politics

Bundestag Approves Contested Pension Package as Merz Quells Party Revolt

11:07 PM, 12/05/2025
Bundestag Approves Contested Pension Package as Merz Quells Party Revolt

The Bundestag approved a contentious pension reform by 318-224, with 53 abstentions, freezing the state pension level at 48% of average wages until 2031. Eighteen younger Union MPs opposed a post-2031 provision they said could cost up to €15 billion a year. The package—backed by Chancellor Friedrich Merz and the Social Democrats—also includes measures to ease work for retirees. Coalition leaders announced a commission to propose broader reforms by mid-2026 amid wider political turbulence and rising support for the AfD.

Bundestag Approves Pension Package After Internal Revolt

Germany's lower house of parliament, the Bundestag, on Friday approved a contested pension reform package that had sparked a rebellion within Chancellor Friedrich Merz's centre-right Union bloc. Lawmakers voted 318-224 in favour of the package, with 53 abstentions.

A central element freezes the state pension level at 48% of average wages through 2031. A group of 18 younger Union lawmakers had opposed a clause that would leave the pension level slightly higher after 2031 than under current law, arguing the change could cost as much as €15 billion annually and place an unfair burden on younger generations.

The package also includes concessions sought by Merz’s conservatives, notably a tax break intended to make it easier for retirees to continue working. Merz’s junior coalition partners, the centre-left Social Democrats, insisted on passing the legislation unchanged, and Merz backed that position.

Coalition leaders sought to calm critics by announcing a commission that will draft proposals for a broader pension overhaul by mid-2026 as Germany grapples with the long-term effects of an ageing population.

“This is not the end of our pension policy, but only the beginning,” Merz said after the vote, adding that the debate had shown “how big the challenges are that our country faces.”

Keen to demonstrate control of his parliamentary majority, Merz pushed for approval by an absolute majority of the Bundestag's 630 members — a threshold that was not strictly required. In the final tally, seven members of his bloc voted against the package, two abstained and one did not vote.

Political Context

The vote comes amid a turbulent start to Merz’s government: he required two rounds of voting to become chancellor in May, and the coalition has already been rocked by a public dispute over a centre-left court nominee that led to her withdrawal. Polls show muted public approval for the government and a rise in support for the far-right Alternative for Germany (AfD) since February’s election.

What’s next: The commission’s mid-2026 timetable sets the stage for longer-term negotiations on how to make Germany’s pension system sustainable while balancing generational fairness and fiscal responsibility.

Similar Articles

Trending